For tax year 2026-27, what is the maximum deduction under section 153(2)(a) of the Income-tax Act, 2025 for savings-account interest of a resident individual aged 45 who has opted out of the section…
Question and options
For tax year 2026-27, what is the maximum deduction under section 153(2)(a) of the Income-tax Act, 2025 for savings-account interest of a resident individual aged 45 who has opted out of the section 202 regime?
₹5,000
₹15,000
₹10,000
₹20,000
Answer and explanation
Correct answer: C - ₹10,000
Section 153(2)(a) allows an individual who is not a senior citizen, or a Hindu undivided family, to deduct savings-account interest up to ₹10,000. The higher ₹50,000 limit in section 153(2)(b), covering time deposits too, is only for senior citizens.
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