Which of the following deductions under Chapter VIII of the Income-tax Act, 2025 cannot be claimed by a…
Under Chapter VIII of the Income-tax Act, 2025 (formerly Chapter VI-A of the Income-tax Act, 1961), the deductions in section 123 (life insurance premia, provident fund…
Choose your answer
Which of the following deductions under Chapter VIII of the Income-tax Act, 2025 cannot be claimed by a partnership firm ?
(i) Section 133 (donations to certain funds, charitable institutions, etc.)
(ii) Section 123 (life insurance premia, contributions to provident fund, etc.)
(iii) Section 126 (health insurance premia)
(iv) Section 129 (interest on loan taken for higher education)
Answer and explanation
Correct answer A
Under Chapter VIII of the Income-tax Act, 2025 (formerly Chapter VI-A of the Income-tax Act, 1961), the deductions in section 123 (life insurance premia, provident fund contributions, etc.) and section 126 (health insurance premia) are available only to an individual or a Hindu undivided family, and the deduction in section 129 (interest on an education loan) only to an individual, so a partnership firm cannot claim any of them. Section 133 allows the deduction for donations to specified funds and charitable institutions 'in computing the total income of an assessee', so a firm can claim it. Hence (ii), (iii) and (iv) cannot be claimed; the options that include (i) or leave out (iv) are wrong.
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UGC NET Commerce