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Income Tax Deductions Quiz

#1

Which of the following is a deductible expense under Section 80C of the Income Tax Act?

Medical insurance premium
Explanation

Deductible expense under Section 80C.

#2

In the context of income tax, what does TDS stand for?

Tax Deducted at Source
Explanation

Acronym for Tax Deducted at Source.

#3

What is the maximum limit for deduction under Section 80CCD(1B) for contributions to the National Pension Scheme (NPS)?

₹50,000
Explanation

Maximum deduction limit for NPS contributions under Section 80CCD(1B).

#4

Under Section 80GGA, what type of donations are eligible for a deduction?

Donations for scientific research or rural development
Explanation

Types of donations eligible for deduction under Section 80GGA.

#5

Under Section 80TTA, what is the maximum amount of deduction allowed for interest earned on savings bank account?

₹10,000
Explanation

Maximum deduction allowed for savings account interest under Section 80TTA.

#6

What is the maximum limit for deduction under Section 80D for premium paid towards health insurance for senior citizens?

₹30,000
Explanation

Maximum deduction limit under Section 80D for senior citizens' health insurance premium.

#7

Under Section 24(b) of the Income Tax Act, what is the maximum deduction allowed on interest paid on home loans for a self-occupied property?

₹2,00,000
Explanation

Maximum deduction allowed on home loan interest under Section 24(b).

#8

Which of the following is NOT eligible for a deduction under Section 80C?

Term Deposit
Explanation

Non-eligible item for deduction under Section 80C.

#9

Under Section 80G, what percentage of the donation made to eligible charitable institutions is deductible from the total income?

100%
Explanation

Percentage deductible from total income under Section 80G for donations.

#10

Under Section 80U, what is the condition for claiming a deduction for a taxpayer with a disability?

Disability should be at least 40%
Explanation

Minimum disability percentage for claiming deduction under Section 80U.

#11

Which of the following is NOT eligible for a deduction under Section 80E for education loan interest?

Loan for spouse's education
Explanation

Non-eligible item for deduction under Section 80E.

#12

Which of the following is a condition for availing deduction under Section 10(14) for House Rent Allowance (HRA)?

Must live in a rented accommodation
Explanation

Condition for availing HRA deduction.

#13

Under which section of the Income Tax Act can an individual claim a deduction for donations made to approved charitable institutions?

Section 80G
Explanation

Section for claiming deduction on donations to charitable institutions.

#14

What is the maximum limit for claiming a standard deduction for salaried individuals under the Income Tax Act?

₹50,000
Explanation

Maximum limit for standard deduction for salaried individuals.

#15

Under Section 10(10D) of the Income Tax Act, which of the following is true regarding the maturity proceeds of a life insurance policy to be tax-free?

Premium paid is less than 10% of the sum assured
Explanation

Condition for tax-free maturity proceeds under Section 10(10D).

#16

Under Section 54 of the Income Tax Act, what is the time limit for reinvesting the capital gains from the sale of a residential property to claim exemption?

2 years
Explanation

Time limit for reinvestment under Section 54 for claiming exemption.

#17

Which of the following is eligible for a deduction under Section 80DD for medical treatment of a dependent with a disability?

Spouse
Explanation

Eligible dependent for deduction under Section 80DD.

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