Question

The annual income of a businessman in the financial year 2020 – 21 is Rs 53, 89, 765 & earns Rs 6, 00, 000 as income from the other sources. He invests Rs 40, 000 per year in NPF, Rs 60, 000 in NSC, Rs 50, 000 as LIC premium & donates Rs 50, 000 to National Defence Fund, eligible for 100% exemption. Calculate the income tax payable by him at the end of financial year. Also, calculate the tax under new regime & comment whether the businessman should opt old regime or new regime.

Answer 1

Answer:

Are you investing for saving tax? Well, there are several options available under section 80c of the Income Tax Act. One such investment is the National Savings Certificate NSC scheme. An initiative by the Government of India for the resident Indians to encourage savings. Investors investing in NSC qualify for section 80c tax deduction up to Rs 1.5 lakhs. The interest earned can be