For an individual opting out of the concessional tax regime under the Income-tax Act, 2025, which…
Life-insurance premium, qualifying tuition fees and Public Provident Fund contributions fall within the specified savings and payments deduction. Section 123 read with…
Choose your answer
For an individual opting out of the concessional tax regime under the Income-tax Act, 2025, which payments/investments qualify for the deduction for specified savings and payments, subject to statutory conditions?
(i) Payment of life-insurance premium
(ii) Payment of interest on an education loan
(iii) Tuition fees for full-time education of any two children at an institution in India
(iv) Public Provident Fund contribution
Answer and explanation
Correct answer C
Life-insurance premium, qualifying tuition fees and Public Provident Fund contributions fall within the specified savings and payments deduction. Section 123 read with Schedule XV of the Income-tax Act, 2025 governs this deduction, subject to the applicable conditions. Interest on an education loan belongs to a separate deduction.
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Himachal Pradesh SET (HP SET)