Match List I with List II under Chapter VIII of the Income-tax Act, 2025: List I a. Section 130 b.…
Under Chapter VIII of the Income-tax Act, 2025: section 130 allows an individual a deduction of up to Rs. 50,000 for interest on a loan taken from a financial institution…
Choose your answer
Match List I with List II under Chapter VIII of the Income-tax Act, 2025:
List I
a. Section 130
b. Section 134
c. Section 135
d. Section 129
List II
i. Deduction in respect of rent paid.
ii. Deduction in respect of certain donations for scientific research.
iii. Deduction in respect of interest on loan taken for residential house property
iv. Deduction in respect of interest on loan taken for higher education.
Answer and explanation
Correct answer B
Under Chapter VIII of the Income-tax Act, 2025: section 130 allows an individual a deduction of up to Rs. 50,000 for interest on a loan taken from a financial institution for acquiring a residential house property, where the loan was sanctioned between 1 April 2016 and 31 March 2017 and the other conditions are met (a-iii); section 134 allows a deduction for rent paid for accommodation occupied for one's own residence (b-i); section 135 allows a deduction for certain donations for scientific research or for research in social science or statistical research (c-ii); and section 129 allows an individual a deduction for interest paid on a loan taken for the higher education of himself or a relative (d-iv). (These were ss.80EE, 80GG, 80GGA and 80E of the Income-tax Act, 1961.)
The correct code is therefore a-iii, b-i, c-ii, d-iv; each of the other codes mismatches at least one pair.
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UGC NET Commerce