Q1. Examine the following statements with regard to the provisions of the Income-tax
Act, 1961:
(i) During the financial year 2018-19, Mr. Amit paid interest on loan availed by him
for his son's higher education. His son is already employed in a firm. Mr. Amit
will get the deduction under section 80E.
(ii) Subscription to notified bonds of NABARD would qualify for deduction under
section 80C. (iii) In order to be eligible to claim deduction under section 80C, investment/
contribution/subscription etc. in eligible or approved modes, should be made
from out of income chargeable to tax.
(iv) Where an individual repays a sum of Rs. 30,000 towards principal and Rs. 14,000
as interest in respect of loan taken from a bank for pursuing eligible higher
studies, the deduction allowable under section 80E is Rs. 44,000. (v) Mrs. Sheela, widow of Mr. Satish (who was an employee of M/s. XYZ Ltd.),
received Rs. 7 lakhs on 1.5.2018, being amount standing to the credit of Mr.
Satish in his NPS Account, in respect of which deduction has been allowed under
section 80CCD to Mr. Satish in the earlier previous years. Such amount received
by her as a nominee on closure of the account is deemed to be her income for
A.Y.2019-20.
(vi) Mr. Vishal, a Central Government employee, contributed Rs. 50,000 towards Tier
II account of NPS. The same would be eligible for deduction under section
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Answers
Explanation:
1st n 2nd is correct .i hope it will hlp you
The provision for income tax is the amount after adjusting the gross profit.
The correct treatment for the following statements are.
1. The statement is correct. The deduction under 80E is available in respect of loan interest taken for higher education or for relative . It is immaterial of the son being employed in a firm, thus it will not affect Amit's eligibility for a loan.
2. The statement is correct. Under section 80C(2) subscription to each bond issued by NABARD will qualify for a deduction under 80C
3.The statement is incorrect. There is no stipulation under 80C for an investment/subscription to me made put from tax chargeable income.
4. The statement is incorrect. Deduction under section 80E is in respect of interest paid on education loan.
5. The statement is incorrect. As per a provision in 80CCD(3) the amount received by the nominee on the closure of NPS account assessee's death will not be deemed to be the income of nominee