Mr. Dinesh, an individual assesse, resident in India, has made the following investments during the previous year $2014 - 15$
(i) Contribution to the 'Public Provident Fund' Rs. $50, 000$ .
(ii) Investment in units of eligible mutual funds Rs. $40, 000$ .
(iii) Insurance premium (Rs. $80, 000$ ) paid on the life of the spouse. Notable that the assured value of this policy is Rs. $4, 00, 000$ and policy is taken on $1 - 4 - 2014$ .
In the case, what is the deduction allowable under section $80$ C for F.Y. $2015 - 16$ ?

Rs.

1, 10, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs.

1, 50, 000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs.

90, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs.

75, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Rs. $1, 50, 000$
Computation of Deduction under Section $80$ C for F.Y. $2015 - 16$
(i) Deposit in PPF Rs. $50, 000$
(ii) Investments in units of mutual funds Rs. $40, 000$
(iii) insurance premium paid on the life of the house Rs. $80, 000$
(Maximum $20 %$ of the assured value Rs. $40, 000$ , because the policy is taken before $1 - 4 - 2015$ )
Total $1, 70, 000$
But the maximum permissible deduction is restricted to Rs. $1, 50, 000$ .

Suggest Corrections

Similar questions

From the following information of Astha Ltd. for the year ended 31st March 2015, prepare Notes to Accounts on Employee Benefit Expenses:

(i) Wages Rs. 5,20,000

(ii) Medical Expenses Rs. 30,000

(iii) Salaries Rs. 7,40,000

(iv) Printing and Stationery Rs. 15,000

(v) Business Promotion Expenses Rs. 50,000

(vi) Gratuity Paid Rs. 1,50,000

(vii) Contribution to Provident Fund Rs. 1,10,000

Show how you would deal with the following items while preparing the Income & Expenditure Account for the year ending on 31st March 2017 and a Balance Sheet as at that date in each of the following alternative cases:

Case (i) Prizes awarded Rs 5,000.

Case (ii) Prizes awarded Rs 5,000; Prize Fund as on 31st March 2016 Rs 40,000; Donations for prizes received during the year 2016-17 Rs 7,200.

Case (iii) Prizes awarded Rs 5,000; Prize Fund as on 31st March 2016 Rs 40,000; Donations for prizes received during the year 2016-17 Rs 7,200; 9% Prize Fund Investments as on 31st March 2016 Rs 40,000; Interest received on Prize Fund Investments Rs 2,700.

Calculate Cash Flow from Investing Activities from the following information:
$\begin{matrix} Particulars & 31st March, & 31st March, 2015 & 2014 Investment in shares of Miko. Ltd. & 18, 00, 000 & 8, 00, 000 12 % Long Term Investments & 1, 50, 000 & 5, 00, 000 Plant and Machinery & 6, 00, 000 & 4, 00, 000 Goodwill & 1, 20, 000 & 40, 000 \end{matrix}$
Additional Information:

(i) 9% dividend was received from Miko Ltd.
(ii) A machine costing Rs. 50,000 (depreciation provided thereon Rs. 15,000) was sold for Rs. 40,000. Depreciation charged during the year was Rs. 55,000.

From the following Receipts and Payments A/c of a club for the year ended 31st March, 2015 and from the informations supplied, prepare Income and Expenditure Account for the year ended 31st March, 2015 and the Balance Sheet as at that date :

$\begin{matrix} Receipts & Rs & Payments & Rs Balance b/d & 1, 50, 000 & Salaries & 1, 50, 000 Subscriptions : & Entertainment Expenses & 60, 000 2013-14 & 10, 000 & Electric Charges & 20, 000 2014-15 & 2, 00, 000 & General Expenses & 30, 000 2015-16 & 20, 000 & Investments & 1, 00, 000 Entertainment Receipts & 1, 00, 000 & Printing and Stationery & 20, 000 Sale of Old Furniture & Newspapers & 30, 000 (Costing Rs 10,000) & 6, 000 & Furniture & 30, 000 Sale of Newspapers & 4, 000 & Miscellaneous Expenses & 20, 000 Balance c/d & 30, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 90, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 90, 000 - -------- - \end{matrix}$

(i) The club has 250 members, each paying an annual subscription of Rs 1,000. Rs 5,000 are still in arrears for subscriptions of 2013-14. In 2013-14, 10 members had paid their subscriptions for 2014-15 as well.

(ii) Salaries paid include Rs 10,000 for 2013-14 and Rs 15,000 for 2015-16. Outstanding salaries for 2014-15 amounted to Rs 20,000.

(iii) On 1-4-2014 the club owned land and building valued at Rs 10,00,000 and furniture valued at Rs 1,10,000.

(iv) Interest for 3 months $6 %$ p.a. has accrued on investments.

Q. Mrs Sharma invests

15 %

of her monthly salary that is Rs.

4428

in Mutual funds. Later she invests

18 %

of her monthly salary on Pension plans also she invests another

9 %

of her salary on Insurance policies. What is the total monthly amount invested by Mrs Sharma?

Join BYJU'S Learning Program