Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation

Mr. Sanjay Rao, a resident individual under the old regime, has gross total income of ₹12,00,000. He claims Section 80C deduction of ₹1,50,000 and Section 80D deduction of ₹25,000. He also made a ₹30,000 donation, to an eligible institution, qualifying for 100% deduction without limit. What is his total income (Chapter VI-A deductions only)?

His total income is ₹9,95,000. Adding the deductions under Section 80C (₹1,50,000), 80D (₹25,000) and the eligible full-deduction donation (₹30,000) gives ₹2,05,000, which is subtracted from gross total income of ₹12,00,000.

  1. A₹9,95,000Correct
  2. B₹10,25,000
  3. C₹10,50,000
  4. D₹9,65,000

Explanation

Total deductions = 1,50,000 + 25,000 + 30,000 = ₹2,05,000. Total income = 12,00,000 - 2,05,000 = ₹9,95,000. Omitting the donation gives ₹10,25,000; omitting 80D as well gives ₹10,50,000.

Did you get it right without looking?

One question tells you little. A timed set on Concepts in Taxation shows your real accuracy, how long you take and where you lose marks.

More Concepts in Taxation questions