Match List-I with List-II under the Income-tax Act, 2025. List-I (Provision)List-II (Ceiling limit) A.…
Under the Income-tax Act, 2025: (A) section 123 allows a deduction of the aggregate of the sums listed in Schedule XV up to Rs. 1,50,000 (IV) (formerly s.80C of the 1961…
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Match List-I with List-II under the Income-tax Act, 2025.
| List-I (Provision) | List-II (Ceiling limit) |
|---|---|
| A. Section 123 (aggregate of the sums enumerated in Schedule XV, such as life insurance premium and provident fund contribution) | I. Rs. 50,000 |
| B. Schedule XV, paragraph 1(y) (individual's own contribution to the notified pension scheme) | II. 10% of salary or 20% of gross total income, as the case may be |
| C. Section 124(3) (separate deduction for the individual's own contribution to the notified pension scheme) | III. 14% of salary |
| D. Section 124(1)(a) (contribution to the notified pension scheme by the employer, being the Central Government or a State Government) | IV. Rs. 1,50,000 |
Answer and explanation
Correct answer B
Under the Income-tax Act, 2025: (A) section 123 allows a deduction of the aggregate of the sums listed in Schedule XV up to Rs. 1,50,000 (IV) (formerly s.80C of the 1961 Act); (B) an individual's own contribution to the notified pension scheme qualifies under paragraph 1(y) of Schedule XV only up to 10% of salary in the case of an employee, or 20% of gross total income in the case of any other individual (II); (C) section 124(3) allows a separate deduction of up to Rs. 50,000 for the individual's own contribution to the pension scheme (I); and (D) under section 124(1)(a), the employer's contribution is deductible up to 14% of salary where the employer is the Central Government or a State Government (III). Hence A-IV, B-II, C-I, D-III. Each of the other combinations pairs at least two provisions with the wrong limit.
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UGC NET Commerce