Mr. Ahmed is 50 years old. His gross total income is ₹ 10,50,000. He has
invested the following amounts in different schemes.
Insurance premium :₹ 1,00,000
Investment in PPF : ₹ 30,000
National Saving Certificate: ₹ 20,000
Find out the permissible deductions, taxable income and the income tax
payable using the following table.
Answers
Answer:
Fixed income instruments typically suit risk-averse investors who want safety of capital and assured returns. Schemes like the Public Provident Fund, National Savings Certificate, Sukanya Samriddhi Yojana etc., in addition to these two aspects, also provide tax-saving benefits under section 80C of Income-Tax Act. In fact, the returns from PPF and SSY are completely tax-exempt, hence, these rank higher in terms of tax efficiency.
As a taxpayer and investor, you need to keep in mind that most long-term tax-saving debt investments have long lock-ins and therefore, liquidity issues. Take your pick from these six fixed income instruments that qualify for tax deductions under Section 80C of the I-T Act.
Answer:
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