With respect to information given in Issue 4, compute the deduction available to Ms. Disha under appropriate provisions of the Income-tax, 1961 for…

Computation of deduction available to Ms. Disha for A.Y.2024-25 Particulars ₹ Life Insurance Premium (See Note 1) 20,000 Contribution to Public Provident fund (See Note 2) Nil Tuition fee of 2 sons for graduation course (See Note 3) 16,000 Housing loan principal repayment (See Notes 4 & 5) Nil Post Office Time Deposit Scheme (See Note 6) 60,000 Investment in National Savings Certificate (See Note 6) 60,000 Total Investment 1,56,000 Deduction under section 80C restricted to 1,50,000 Notes: 1. Any amount of life insurance premium paid in excess of the specified percentage of actual capital sum assured shall be ignored for the purpose of deduction under section 80C. In the given case, since the insurance policy has been issued before 1.04.2012, therefore, premium paid upto 20% of actual capital sum assured i.e.,52,000 shall be allowed as deduction. Hence, the premium of 20,000 paid during the year is allowable as deduction under section 80C. 2. In the case of an individual, contribution to PPF can be made in his name or in the name of his spouse or children to qualify for deduction under section 80C. As the contribution was made in the name of his father, deduction is not allowable. 3. Tuition fee paid is eligible for deduction under section 80C for a maximum of two children. Therefore,16,000 shall be allowed as deduction. Tuition fee paid to an educational institution situated outside India is not eligible for deduction. 4. In order to claim the principal repayment on loan borrowed for house property as deduction, the construction of such property should have been completed and should be chargeable to tax under the head "Income from house property". In the given case, since the property is under construction, principal repayment does not qualify for deduction. 5. Repayment of principal on housing loan is not allowed as deduction in case the loan is borrowed from friends, relatives etc. In order to qualify for deduction, the loan should have been obtained from Central Government / State Government / bank /specified employer / institution. 6. The following investments are also eligible for deduction under section 80C:- (1) five year time deposit in an account under Post Office Time Deposit Rules, 1981; and (2) investment in National Savings Certificate