Match List I with List II List I List II A. 80 GG I. Deduction in respect of contribution B. 80 GGA II. Deduction in respect of contribution given C. 80 GGB III. Deduction in respect of scientific research. D. 80 GGC IV. Deduction in respect of rent paid. Choose the correct answer from the options given below:
given by companies to political parties.
by any person to political parties.
A - IV, B - III, C - I, D - II
Understanding Income Tax Deductions: Matching Sections
The question asks us to match specific sections of the Income Tax Act, 1961, primarily falling under Chapter VI-A, with the types of deductions allowed under those sections. These deductions help reduce the taxable income of an individual or entity.
Let's analyze each section from List I and find its corresponding deduction type in List II based on common knowledge of Income Tax provisions.
- 80 GG: This section provides a deduction for rent paid by an individual, provided they do not receive House Rent Allowance (HRA) and are self-employed or whose employer does not provide HRA. This matches with 'Deduction in respect of rent paid' (Item IV in List II).
- 80 GGA: This section allows for deductions in respect of donations made towards scientific research or rural development. This aligns with 'Deduction in respect of scientific research' (Item III in List II).
- 80 GGB: This section allows Indian companies to claim a deduction for contributions made to political parties or electoral trusts. This corresponds to 'Deduction in respect of contribution given by companies to political parties' (Item I in List II).
- 80 GGC: This section allows any person (other than a local authority or a company) to claim a deduction for contributions made to political parties or electoral trusts. This matches with 'Deduction in respect of contribution given by any person to political parties' (Item II in List II).
Based on this analysis, the correct matching is:
- A. 80 GG matches with IV. Deduction in respect of rent paid.
- B. 80 GGA matches with III. Deduction in respect of scientific research.
- C. 80 GGB matches with I. Deduction in respect of contribution given by companies to political parties.
- D. 80 GGC matches with II. Deduction in respect of contribution given by any person to political parties.
Let's present this matching in a table:
| List I (Income Tax Section) | List II (Type of Deduction) | Match |
|---|---|---|
| A. 80 GG | IV. Deduction in respect of rent paid. | A - IV |
| B. 80 GGA | III. Deduction in respect of scientific research. | B - III |
| C. 80 GGB | I. Deduction in respect of contribution given by companies to political parties. | C - I |
| D. 80 GGC | II. Deduction in respect of contribution given by any person to political parties. | D - II |
Comparing this matching with the given options, we find that the mapping A - IV, B - III, C - I, D - II is presented in Option 1.
Revision Table for Income Tax Deductions
| Section | Nature of Deduction | Applicability |
|---|---|---|
| 80GG | Rent Paid | Individuals (not receiving HRA) |
| 80GGA | Donations for Scientific Research/Rural Development | All assessees (except those with business income) |
| 80GGB | Contributions to Political Parties | Indian Companies |
| 80GGC | Contributions to Political Parties | Any person (other than company, local authority, etc.) |
Additional Information on Income Tax Deductions
Chapter VI-A of the Income Tax Act, 1961, deals with various deductions that can be claimed from the gross total income of an assessee. These deductions are allowed for specific expenses incurred or investments made, thereby reducing the total taxable income.
- Section 80GG: The deduction amount is the least of: a) Rs. 5,000 per month; b) 25% of adjusted total income; c) Actual rent paid minus 10% of adjusted total income. Applicable conditions include not receiving HRA and filing Form 10BA.
- Section 80GGA: Deduction is 100% of eligible donations. This section applies to assessees who do not have any income chargeable under the head 'Profits and Gains of Business or Profession'.
- Section 80GGB & 80GGC: These sections allow deduction for contributions to political parties registered under Section 29A of the Representation of the People Act, 1951, or electoral trusts. Contributions made in cash are not eligible for deduction under these sections.
Understanding these sections is crucial for tax planning and compliance, helping taxpayers correctly calculate their taxable income by claiming eligible deductions.
Important Questions from Deduction and Collection of tax at source
Income received and accrued or arisen outside India from a business controlled in or a profession set up in India, is taxed in the hands of which of the following?
a. Every citizen of India
b. Domicile of India
c. Ordinary Resident
d. Non-Ordinarily Resident
e. Non-Resident
Choose the correct answer from the options given below:
Match List I with List II:
List I List II (A) Section 80 EE (I) Deduction in respect of rent paid (B) Section 80 GG (II) Deduction in respect of certain donations for scientific researches (C) Section 80 GGA (III) Deduction in respect of interest on loan taken for residential house (D) Section 80 E (IV) Deduction in respect of payment of Interest on loan taken for Higher Education. Choose the correct answer from the options given below:
Which of the followings is correct about deduction available in respect of contribution to various provident funds in case of salaried employees?
(A) Employer's contribution to recognised provident fund is exempted upto 12% of salary.
(B) Employer's contribution to unrecognised provident fund is exempted from tax.
(C) Employer does not contribute to Public Provident Fund.
(D) Deduction under Section 80 C is available for employer's contribution in unrecognized provident fund.
Choose the correct answer from the options given below:
Mr. X is entitled to transport allowance of Rs. 1,800 p.m. for commuting from his residence to office and back and he spends Rs. 1,400 p.m. The exemption shall be allowed of
As per section 80G maximum deduction allowed for any cash donation is upto
