- Deduction under section 80C is allowed up to a maximum limit of Rs. 1,50,000 and can be claimed for payments such as life insurance premiums, contributions to provident funds, tuition fees and term deposits with banks of at least 5 years. - Deduction under section 80D can be claimed for medical insurance premiums paid for an individual, HUF or family. The maximum deduction is Rs. 25,000 which is Rs. 50,000 for senior citizens. - Deduction under section 80DD is allowed up to Rs. 75,000 for dependent family members with severe disabilities irrespective of actual expenditure.

1. Question A B C D Solution
For claiming deduction u/s 80C the
payment or deposit should be made
Out of any income
Out of income chargeable
to tax
Out of current years
income chargeable to tax
Out of exempt income
Out of income
chargeable to tax
Deduction u/s 80C in respect of LIP,
Contribution to provident fund, etc. is
allowed to :
Any assessee An individual An individual and/or HUF
An individual or HUF
who is resident in India.
An individual and/or
HUF
Deduction u/s 80C is allowed to the
maximum limit of
70,000 1,50,000 30,000 None of the above 1,50,000
An assessee has paid life insurance
premium of 1,25,000 during the previous
year for a policy of 5,00,000. He shall :
Not be allowed
deduction u/s 80C
Be allowed Deduction u/s
80C to the extent of 20%
of the capital sum assured
i.e. 1,00,000
Be allowed Deduction for
the entire premium as per
the provisions of section
80C
None of the above
Be allowed Deduction
u/s 80C to the extent of
20% of the capital sum
assured i.e. 1,00,000
For claiming deduction u/s 80C in respect
of life insurance premium, it can be paid
by assessee for
Self only
Self spouse, brothers &
sisters
Self, spouse and any child None of the above
Self, spouse and any
child
Deduction u/s 80C in respect of term
deposit with a scheduled bank is allowed
if the term deposit is for a period
Not less than 3 years Not less than 5 years Not less than 10 years None of the above Not less than 5 years
Deduction u/s 80C in respect of tuition
fee is allowed to an individual for
Any of his children Any of his minor children
Any two children of such
individual
None of the above
Any two children of
such individual
Deduction u/s 80C in respect of tuition
fee is allowed to
An individual only Individual or HUF An HUF only None of the above An individual only
For claiming Deduction u/s 80D, the
payment or deposit should be made
Out of past income
Out of any income
chargeable to income tax
During the current year
out of any source
None of the above
Out of any income
chargeable to income tax
Deduction u/s 80D in respect of medical
insurance premium is allowed to
Any assessee
An individual and/or
HUF
Individual only None of the above
An individual and/or
HUF
Deduction under section 80DD shall be
allowed
To the extent of
actual
expenditure/deposit
or 1,50,000
whichever is less
For a sum of 75,000
irrespective of actual
expenditure or deposit
For a sum of 1,50,000
irrespective of any
expenditure incurred or
actual deposited
None of the above
For a sum of 75,000
irrespective of actual
expenditure or deposit

2. Deduction u/s 80DD in case of dependent
with serve disability shall be allowed
To the extent of
actual expenditure
75,000
1,25,000 irrespective of
actual expenditure
None of the above
1,25,000 irrespective of
actual expenditure
The payment for Insurance premium
under section 80D should be
In cash
By any mode other than
cash
None of the above
By any mode other than
cash
The quantum of deduction allowed under
section 80D shall be limited to
20,000 10,000 25,000 None of the above 25,000
Deduction u/s 80D is allowed to an
individual for premium paid to insure the
health of
Assessee himself Assessee and his family
Assessee, his spouse,
parents and dependent
children
None of the above
Assessee, his spouse,
parents and dependent
children
Deduction under section 80CCC is
allowed to the extent of
2,00,000 1,50,000 4,00,000 10,000 1,50,000
Deduction in respect of contribution for
annuity plan to certain pension fund under
u/s. 80CCC is allowed to
Any company Individuals only Individual or HUF a & b Individuals only
The quantum of deduction u/s 80D shall
be limited to in case of senior citizens
20,000 15,000 50,000 25,000 50,000
Senior citizens for section 80D means
attaining _____ years anytime during the
previous year or more.
60 years 75 years 55 years 65 years 60 years
Deduction u/s 80E shall be allowed in
respect of amount paid by way of interest
on loan taken from
Any person Any relative
Financial institution or
approved charitable
institution
None of the above
Financial institution or
approved charitable
institution
The deduction u/s 80E is allowed for
repayment of interest to the extent of :
50,000 1,00,000
An amount paid as interest
during the year
None of the above
An amount paid as
interest during the year
Deduction u/s 80E shall be allowed for
the higher education of
Assessee himself
Assessee, spouse and
children
Assessee and dependent
children
None of the above
Assessee, spouse and
children
Person with severe disability means
person with _____ or more of one or
more disability as referred under equal
opportunity, protect of right and full
participation act, 1995.
50% 75% 80% 60% 80%
Deduction u/s 80U in case of person with
disability is allowed to
An individual who is
citizen of India
An individual who is
resident of India
Any individual assessee None of the above
An individual who is
resident of India

3. The quantum of deduction allowed u/s
80U is
80,000 75,000 50,000 70,000 75,000
Annual interest accrued on NSCs VIII
issue shall be
Exempt from tax Taxable only on receipt
Taxable on the basis of
annual accrual
None of the above
Taxable on the basis of
annual accrual
For claiming deduction u/s 80 – C in
respect of life insurance premium shall be
allowed for :
self only self or spouse self, spouse and any child None of the above
self, spouse and any
child
In the case of HUF, deduction u/s 80 C in
respect of life insurance premium shall be
allowed for :
Karta of HUF Any member of HUF
karta and Coparcaner of
the HUF
None of the above Any member of HUF
An assessee has paid life insurance
premium of 25,000 during the previous
year for a policy of 1,00,000. He shall :
Not be allowed
deduction u/s 80C
Be allowed Deduction u/s
80 C to the extent of 20%
of the capital sum assured
i.e. 20,000.
Be allowed Deduction for
the entire premium as per
the provisions of section
80-C.
None of the above
Be allowed Deduction
u/s 80 C to the extent of
20% of the capital sum
assured i.e. 20,000.
Annual interest accrued on NSCs VIII
issue shall be
Exempt
Taxable only in VIth
year
Taxable on the basis of
annual accrual
None of the above
Taxable on the basis of
annual accrual
Deduction u/s 80-C in respect of tuition
fee is allowed for the purposes of :
An individual only Individual of HUF Any assessee None of the above An individual only
Deduction u/s 80-C for tuition fee shall be
allowed for the purposes of :
Any full time
education in a school
or college
Any full or part time
education
Any part time education in
a college abroad
None of the above
Any full time education
in a school or college
Deduction in respect of contribution for
annuity plan to certain pension fund under
80 CCC isallowed to
Any assesse Individual only Individual or HUF None of the above Individual only
Deduction u/s 80 DD shall be allowed :
To the extent of
actual expenditure
75,000
1,25,000 irrespective of
actual expenditure
None of the above 75,000
The deduction u/s 80 E is allowed for
repayment of interest to the extent of :
25,000 40,000
an amount of interest
during the P.Y.
None of the above
an amount of interest
during the P.Y.
The aggregate amount of the deduction
under chapter VI A shall not exceed the
________.
Gross total income Net total income 10,00,000 None of the above Gross total income
As per section 80 CCE, the total
deduction an assessee can claim u/s 80C,
80 CCC & 80 CCD is restricted to
________.
10,00,000 1,50,000 5,00,000 8,00,000 1,50,000

4. The deduction u/s 80E for payment of
interest on loan for higher education is
allowed for maximum period of
________.
8 Years 6 Years 7 Years 5 Years 8 Years
The quantum of deduction of 1,00,000 u/s
80U can be claimed if a person is with
disability of ________.
30% or more 80% or more 40% or more None of the above 80% or more
Interest on deposits (not being time
deposits) in a saving account with a bank
deduction shall be allowed u/s. 80TTA
with reference to such income not
exceeding
5,000 10,000 25,000 50,000 10,000
The maximum quantum of deduction u/s
80 D for senior citizen not covered under
insurance policy is upto
25,000 50,000 55,000 None of the above 50,000