{"id":31979,"date":"2024-04-15T08:53:51","date_gmt":"2024-04-15T08:53:51","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=31979"},"modified":"2024-04-15T08:53:51","modified_gmt":"2024-04-15T08:53:51","slug":"nikhil-is-looking-for-tax-efficient-savings-methods-for-his-disposable-income-he-is-considering-an-equity-linked-savings-scheme-national-savings-certificates-and-an-endowment-insurance-policy-premi","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/nikhil-is-looking-for-tax-efficient-savings-methods-for-his-disposable-income-he-is-considering-an-equity-linked-savings-scheme-national-savings-certificates-and-an-endowment-insurance-policy-premi\/","title":{"rendered":"Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for which of these investments are allowed to be deducted from his taxable income?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6aac6302cdb67\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    The national savings certificates only                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    The equity-linked savings scheme and the national savings certificates only                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    The national savings certificates and the endowment insurance policy only                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    The equity-linked savings scheme, the national savings certificates and the endowment insurance policy                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. The equity-linked savings scheme and the national savings certificates only<\/strong>.<\/p>\n<p>Premiums for equity-linked savings schemes and national savings certificates are allowed to be deducted from taxable income under Section 80C of the Income Tax Act, 1961. Endowment insurance policies are not allowed to be deducted from taxable income.<\/p>\n<p>Section 80C of the Income Tax Act, 1961 allows an individual to claim a deduction of up to \u00e2\u0082\u00b91.5 lakh in a financial year from his\/her gross total income for investments made in certain specified schemes and instruments. These include equity-linked savings schemes, national savings certificates, public provident fund, life insurance premium, tuition fees for children&#8217;s education, and repayment of loans taken for higher education.<\/p>\n<p>Equity-linked <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> savings schemes (ELSS) are a type of mutual fund that invests in equities. They offer the potential for higher returns than other types of mutual funds, but they also carry a higher risk. ELSS are eligible for a deduction under Section 80C of the Income Tax Act, 1961.<\/p>\n<p>National savings certificates (NSCs) are a type of government-backed saving scheme that offers a fixed rate of interest. NSCs are available in two variants: 5-year NSCs and 10-year NSCs. 5-year NSCs offer a rate of interest of 6.8% per annum, while 10-year NSCs offer a rate of interest of 7.4% per annum. NSCs are eligible for a deduction under Section 80C of the Income Tax Act, 1961.<\/p>\n<p>Endowment insurance policies are a type of life insurance policy that offers a combination of life insurance cover and savings. Endowment insurance policies are typically sold by life insurance companies. The premiums paid for endowment insurance policies are not eligible for a deduction under Section 80C of the Income Tax Act, 1961.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. 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