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.
- A₹9,95,000Correct
- B₹10,25,000
- C₹10,50,000
- 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.
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