Under the optional regular regime, which section of the Income-tax Act, 2025 allows an eligible employee’s own contributions to a recognised provident fund as a deduction?
Question and options
Under the optional regular regime, which section of the Income-tax Act, 2025 allows an eligible employee’s own contributions to a recognised provident fund as a deduction?
Section 124
Section 123
Section 19
Section 126
Answer and explanation
Correct answer: B - Section 123
Paragraph 7 of Part A of Schedule XI to the Income-tax Act, 2025 allows an employee's own provident fund contributions as a deduction determined under section 123, within the ₹1,50,000 limit for the sums listed in Schedule XV. Section 124 deals with contributions to the pension scheme, and section 19 with deductions from salary such as the standard deduction.
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