TS SET Paper 2 Mock Test - 7 (Commerce) - TS TET MCQ

The correct answer is Profit.

Key Points

• Profit is the excess of revenue of a business over its costs. It can be gross profit or net profit.
• Gross profit is the difference between sales revenue or the proceeds of goods sold and/or services provided over its direct cost of the goods sold.
• Whereas Net profit is the profit made after allowing for all types of expenses.
• There may be a net loss if the expenses exceed the revenue

Additional Information

• Loss means something against which the firm receives no benefit. It is a fact that expenses lead to revenue but losses do not, such as theft.
• Costs incurred by a business in the process of earning revenue are known as expenses. In general, it is measured by the cost of assets consumed or services used during the accounting period. The common items of expenses are Depreciation, Rent, Wages, Salaries, Interest, Cost of Heating, Light and water and Telephone, etc.
• Expenditure is Spending money or incurring liability for some benefit, service or property received. For example Payment of rent, salary, purchase of goods, purchase of machinery, etc.

An indemnity is a comprehensive form of insurance compensation for damages or loss. 

Contract of Indemnity:

• An indemnity contract is a legal arrangement between two parties where one party agrees to pay the other for a loss or harm that meets a certain requirement unless other circumstances are specified.
• It is a form of contingent contract characterized by all the essential elements of a valid contract which includes lawful consideration and object.
• The two parties involved are the indemnifier and the indemnified.
• The indemnifier is the promisor who agrees to make up for the damage that could be caused to another group.
• The indemnified is the person who is assured of the compensation for the damage incurred.
• The contract of indemnity agreement involves consideration.
• The mode of compensation for the contract can be expressed or implied.

Therefore, the contract of indemnity must be lawful consideration and object.

The assertion is true that most of the development banks in India have set up private commercial banks after the introduction of capital adequacy norms, but the reason is not true because development banks in India have adhered to their basic objectives.

Key Points

Giffen Goods:

• A Giffen good refers to a good that people consume more as the price rises.
• A Giffen good is one that doesn't seem to follow the "law of demand," which states that price and quantity demanded are inversely connected, which means a fall in its price tends to reduce demand.

Important Points

• A Giffen good is one that doesn't seem to follow the "law of demand," which states that price and quantity demanded are inversely connected.
• The term comes from the Scottish writer and statistician Sir Robert Giffen (1837–1910).
• People will actually increase their demands for a Giffen good as the price increases and vice versa.
• Furthermore, a sizable portion of revenue is predicted to be spent on goods.
• The Giffen "paradox"—where the poor eat more bread as its price increases—was the famous case that Giffen used to illustrate his point.

Example of Giffen Goods:

• Assume a family consumes 10 kg of food grain (6kg bajra and 4 kg wheat) and spends ₹70.
• Wheat price = ₹10/kg Bajra = ₹5/kg.
• Present consumption is (10 x 4) + (6 x 5) = 40+30 = ₹70
• If price of Bajra falls to ₹4, for getting 10kg, the family can modify consumption as 5kg wheat and 5 kg bajra spending (5 x 4) + (5 x 10) = ₹70.
• Wheat is substituted for Bajra even when price of bajra falls.
• This is the Giffen goods concept which does not follow law of demand.

Hence, it can be concluded that Giffen goods are those goods whose demand reduces as the price decreases.

Additional InformationLaw of Demand: Law of demand says that, when all other variables are held constant, the quantity demanded and price of any good or service exhibit an inverse relationship. It also indicates that as a certain product's value rises, demand for that thing falls; the exact opposite can also be seen.

Exceptions to the law of demand:

• Giffen Goods
• Veblen Goods
• Price changes Expectation
• Necessary Goods
• Luxury Goods
• Change in Income
• Demonstration Effect
• Consumer Negligence
• Change in Taste and Prefrence

Key Points

CONFLICT MANAGEMENT AT WORKPLACE:

• A conflict arises when individuals have different opinions, thought processes, attitudes, interests, and needs and find it difficult to adjust to each other. When individuals perceive things in dissimilar ways and cannot find the middle way, a conflict starts. 
• No organization can survive if the employees are constantly engaged in fights and conflicts. The individuals have to give their hundred per cent at the workplace to generate revenue and profits for the organization.
• Conflicts must be avoided at workplaces for a healthy and competitive environment. Employees must ensure that precautionary measures are taken in advance to prevent conflicts at the workplace.
• Employees are the assets of any organization and they must feel motivated and elated to perform well. Conflicts only lead to tensions and depression and nothing productive comes out of it. No individual can work alone; he has to depend on his fellow workers for the maximum output. Every individual has to work in a team and can’t afford to fight with his team members.
• Conflict Management prevents the eruptions of fights and also allows the employees to be serious about their work.
• Conflicts also lead to unnecessary tensions and disagreements among individuals.
• Conflict Management reduces tensions and employees feel motivated to give their level best to the organization. No one gains from conflicts. One should avoid fighting over petty issues and criticizing fellow employees at the workplace.
• Conflict Management plays a very important role at workplaces as it prevents unnecessary fights and makes offices a better place to work.

Assertion (A): Consumers need to be given legal protection against certain trade practices and business methods.

Explanation:

1. Consumers need to be given legal protection against certain trade practices and business methods as a seller may use unfair trade practices which can harm the consumer financially as well as in health regard.
2. Thus, Consumer Protection Act, 1986 (CPA) is enacted that provides for effective protection of the interests of consumers and as such makes provision for the establishment of consumer councils and other authorities that help in the settlement of consumer disputes and matters connected therewith.
3. Thus, the assertion is correct.

Reason (R): Protection as per market forces and 'Caveat Emptor' is not enough as a perfectly competitive market is an economist's dream and consumer sovereignty is a myth.

Explanation:

1. Caveat emptor is Latin for "let the buyer beware."
2. A doctrine that often places on buyers the burden to reasonably examine the property before purchase and take responsibility for its condition.
3. It is especially applicable to items that are not covered under a strict warranty.
4. The rule of 'Caveat Emptor' has many drawbacks in the sense that consumers might not be educated enough to understand the technical aspects of goods purchased by them.
5. Thus, it is not enough protective measure against consumer exploitation.
6. Consumer sovereignty is an economic concept where the consumer has some controlling power over goods that are produced and the idea that the consumer is the best judge of their own welfare.
7. However, in reality, consumer choice is affected by marketing strategies and marketers resort to advertising tactics that blindfold the consumer.
8. 'Consumer Sovereignty' is a myth.

Thus, even though the reason is correct, it doesn't justify the assertion.

The correct answer is Option 3

Key Points Business Economics:

• Business economics is a branch of applied economics that looks into the financial, organisational, market-related, and environmental concerns that businesses confront.
• The concept of scarcity, product factors, distribution, and consumption are all covered in business economics.
• Managerial economics is a branch of business economics that is very important.

Important Points

Features of Business Economics

• Business Economics is related with the micro-economics. It is micro in nature. It is mainly related with the problems of individual unit. Hence, Statement (i) is correct
• Business Economics helps to formulate the economic policy, Taxation policy, credit policy. Import-Export policy etc. it is considered as Normative in nature. Normative Economics helps to solve the particular economic problems and formulation of economic policies. e. g. concept of elasticity of demand is used to determine the price of a product, as well as to impose the tax on a commodity. Hence, Statement (ii) is incorrect.
• Business Economics is both conceptual and metrical. It outlines, the conceptual framework to understand, analyse and solve the decision making problems of any business. It also makes the use of various quantitative techniques from various subjects to solve the problems of any business. Hence, Statement (iii) is correct.
• Business Economics primarily uses the theory of markets and private enterprises. It uses the theory of the firm and resource allocation in a private enterprise economy. Hence, Statement (iv) is correct.

The correct answer is "Marketing information management (MIM)".

Key Points

• A marketing information system is a tool used by managers and marketing teams to collect, store, and analyze data properly. In other words, if marketing information management is the “what," then a marketing information system is the “how,” and an efficient system can show you "why" marketing metrics are important. 
• Marketing information management is the process of gathering, organizing, and analyzing important market research data. This data often consists of :
  • ​Sales reports
  • Results from past campaigns
  • Expert insight from in-house teams
  • Additional analytics from marketing software tools
• ​Without a proper organization system, information can get lost which skews results, throws off forecasts, and leads to costly marketing spend. That’s why it’s essential to keep these invaluable data sets all in one searchable place. Having a system all employees can follow prevents vital details from slipping between the cracks. ​

Important Points 

• All marketing teams need marketing information management. Not only does it help prove ROI it also makes it easier to:
  • ​Accurately forecast growth and sales potential.
  • Justify budget allocations
  • Discover audience preferences.
  • Find new focus areas.
  • Predict seasonal or industry buying cycles.
  • Compare branding and products with competitors
  • Keep a finger on the pulse of global, national, and local industry trends.
  • Pivot your existing strategy to a new, more efficient one.
• ​The biggest challenges of marketing information management include:
  • Data storage and security
  • Lack of systems for labeling, capturing, and sorting data
  • Balancing information accessibility with privacy considerations
  • Data analytics in marketing
  • Finding an efficient yet compliant workflow
  • Holding employees accountable to following the agreed-upon management practices
  • Resolving redundancies and outdated information consistently​

Additional Information

• ​Channel management - It is defined as a process where the company develops various marketing techniques as well as sales strategies to reach the widest possible customer base. The channels are nothing but ways or outlets to market and sell products.
• Product management - The process of developing, improving, obtaining, and maintaining the products/services of the business to meet consumer demand.
• Market planning - Market planning is the process of organizing and defining the marketing aims of a company and gathering strategies and tactics to achieve them. 

Key Points

• On April 1, 2006, Section 80C of the Income Tax Act became effective.
• In general, it permits some expenses and investments to be tax-exempt.
• You can deduct up to Rs. 1.5 lakh from your investments if you plan them carefully and distribute them among other investments like PPF, NSC, etc. This will reduce your tax liability.

Important PointsSection 80C of Income Tax Act:
An individual and HUFs can claim deductions under Section 80C on payments made to the following:

• The premium for Life Insurance for self, spouse, or children.
• Deferred Annuities are payable by self and the Government.
• Contribution towards PPF(Public Provident Fund).
• Contribution towards PFs operated by the Central Government.
• Contribution towards a Recognized PF.
• Contribution towards a Superannuation Fund.
• Subscription for a Government Deposit or Security.
• Subscription for Saving Certificates.
• Subscription to ULIP, 1971.
• Contribution towards ULIP of LIC Mutual Fund.
• Insurance company’s Annuity Plans including LIC.
• Subscription to Notified units of Mutual Fund.
• Contribution to the Pension Fund of Notified units of Mutual Fund.
• National Housing Bank’s Pension Fund.
• Subscribing to the Deposit Scheme of a Public Sector companies allocating long-term financing for housing.
• Tuition fees for a maximum of 2 children studying in India.
• Repayment of housing loan taken for a residential property.
• Subscription to Mutual Funds units recommended by Central Board of Direct Taxes.
• An FD from a scheduled bank with a minimum tenure of 5 years.
• NABARD notified bonds.
• Contributions to Senior Citizens Saving Scheme.
• Tax Saving 5 Year FD.

Hence, it can be concluded that deduction for unrecognized provident fund is not allowed under section 80C in respect of employees' contributions every year.

Pension is a retirement benefit and it is taxed as salary in the hands of an employee. Family pension is taxable under the head "Income from other sources" u/s 57(ii) a standard deduction shall be allowed to the legal heir @33.33% of such pension or Rs. 15,000, whichever is less.

The person who receives the family pension was not an employee but the dependent of the employee. People eligible for pension/family pension are the person himself, his/her spouse, children below 25 years of age, and unmarried daughter.

Therefore, statement (A) is incorrect and (R) is correct.

The correct answer is Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Key Points

• Assertion (A): SEBI has the power to compel the listing of securities by public companies.
  • A company desirous of listing its securities on the exchange is required to file an application, in the prescribed format, with the exchange before issuing the prospectus by the company, where the securities are to be issued by way of a prospectus, or, before the issue of 'Offer for Sale', where the securities are to be issued by way of an offer for sale.
  • The company is responsible to follow all the requirements specified in the Companies Act, the listing norms issued by SEBI, and such other conditions and requirements that may be in force from time to time and included hereafter in the SEBI bye-laws and regulations to make the security eligible to be listed and for continuous listing on the exchange.
  • SEBI can compel a public company to get its securities listed on Stock Exchanges before making a public issue.

Thus, the assertion is correct.

• Reason (R): SEBI has the power to regulate insider trading or can regulate the functions of merchant bankers.
  • Insider trading refers to the act of buying or selling securities by the insiders of a company, which includes the directors, employees, and promoters.
  • As per the provisions of the Securities and Exchange Board of India Act 1992, no person shall directly or indirectly engage in insider trading.
  • To prevent the practice of insider trading, SEBI has barred the companies to purchase their own shares from the secondary market.

Thus, the reason is correct.

On the basis of the above information, it can be concluded that both the assertion and reason are correct, but, the reason is not the correct explanation of the assertion.

Key Points The correct match is given below:

Important Points 

Assessment year:

• The Assessment Year is defined under Section 2(9) of the Income Tax Act as the period of 12 months starting from April 1 of every year and ending on March 31 of the following year.
• It is the year following the financial year in which the income is earned and assessed for taxation purposes.

Capital asset:

• Capital Asset is defined under Section 2(14) of the Income Tax Act as any kind of property held by a taxpayer, whether or not connected with their business or profession, but excludes certain assets such as stock-in-trade, personal effects, and agricultural land in rural areas.

Gross total income: 

• Gross Total Income is defined under Section 80B(5) of the Income Tax Act as the total income of a taxpayer before making deductions under Chapter VI-A of the Act.

Perquisite-

• Perquisite is defined under Section 17(2) of the Income Tax Act as any benefit or amenity granted to an employee by their employer, which is chargeable to tax as a part of the employee's income.
• Examples of perquisites include rent-free accommodation, use of a company car, and club memberships paid for by the employer.

Hence, A-II, B-IV, C-III, D-I is the correct answer. 

Investment in Equity shares is the most risky. The higher the volatility of a stock, or any asset, the higher its risk. Unit trusts that invest only in equities are higher risk than those that invest in other assets. Their prices move further and the chance of loss is higher.

Outcome-based pricing

• Outcome-based pricing is a method when the price of a product is based according to its perceived value rather than its costs.
• The business later aligns the price of the product as per the value.
• This pricing method is suitable where the outcome of the business is linked with the goals of the business and the business outcome thus benefits the end customers.
• It is important for a business to maintain a balance so that the buyer can define the outcome of the product appropriately which is acceptable and measurable to the service provider.
• It encourages increased productivity and efficiency of the business.
• It is a win-win approach for both the service provider and the buyer.

Therefore, when pricing is done for the IT sector, increasing the profitability of the client will represent outcome-based pricing as the main aim of the business is to increase the profit of the client which is linked with the goals of the business.

Brainstorming combines a relaxed, informal approach to problem-solving with lateral thinking. It encourages people to come up with thoughts and ideas that can, at first, seem a bit crazy. Some of these ideas can be crafted into original, creative solutions to a problem, while others can spark even more ideas.A business game is an interactive structured training activity with specially created conditions, which aim to reproduce those of a working situation in a successful business.Role-playing the acting out of the part of a particular person or character, for example as a technique in training or psychotherapy.

The insurance Regulatory and Development Authority of India or the IRDAI (also referred to as IRDA) is a government body responsible for regulating and developing the insurance industry in India.

Important Points

The Insurance Regulatory and Development Authority of India or the IRDAI is the apex body responsible for regulating and developing the insurance industry in India.

• It is an autonomous body.
• It was established by an act of Parliament known as the Insurance Regulatory and Development Authority Act, 1999. Hence, it is a statutory body.

• The functions of the IRDA are listed below:

  • Its primary purpose is to protect the rights of the policyholders in India. 
  • It gives the registration certificate to insurance companies in the country.
  • It also engages in the renewal, modification, cancellation, etc. of this registration.
  • It also creates regulations to protect policyholders’ interests in India.

From the above, we can conclude that IRDA regulates Insurance Companies.

The correct answer is They foster uncertainty and hinder planning.

• In the passage, "Government interventions in areas such as trade, labor, and industrial practices can be both a boon and a bane for enterprises."
• The passage suggests that government interventions in trade and labor can be a "bane," implying a negative impact that includes fostering uncertainty and hindering planning.
• Option b, "They foster uncertainty and hinder planning," aligns with this negative impact.

• The other options (a. They have no effect on business environments, c. They always create a conducive business environment, d. They primarily focus on international collaborations) do not accurately represent the potential negative consequences mentioned in the passage.
• The use of the term "boon and a bane" underscores the dual nature of government interventions, emphasizing the potential challenges businesses may face.

The correct answer is Political stability can disrupt established business models.

• In the passage, "Political stability, or lack thereof, can significantly shape the trajectory of businesses in India.
• The passage suggests that political stability or its absence can shape the trajectory of businesses, indicating that political stability is not a guarantee of smooth business operations.
• The possibility of disruption is captured by option 2, "Political stability can disrupt established business models."

Additional Information

• The other options (1. Political stability has no impact on business operations, 3. Political instability enhances business strategies, 4. Political decisions do not influence business trajectories) do not accurately capture the nuanced relationship described in the passage.
• The phrase "shape the trajectory" implies that political stability can have both positive and negative impacts on business operations, requiring businesses to navigate accordingly.

The correct answer is 10%

Key PointsTDS is required to be deducted at the rate of –

• 2% in case of fees for technical services (not being professional services) or royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; and
• 10% in other cases.

Additional InformationNo tax deduction is required if the amount of fees or the aggregate of the amounts of fees credited or paid or likely to be credited or paid during a
financial year does not exceed 30,000 in the case of fees for professional services, 30,000 in the case of fees for technical services, 30,000 in the
case of royalty and 30,000 in the case of non-compete fees. The limit of 30,000 under section 194J is applicable separately for fees for professional services, fees for technical services, royalty, and non-compete fees referred to in section 28(va).

A list of all the units of population and their description understudy is called a sampling frame.

A sampling frame is the source material or device from which a sample is drawn. It is a list of all those within a population who can be sampled and may include individuals, households, or institutions.

Post Purchase Behaviour is the last stage in the consumer decision process.

• A buying process is a series of steps that a consumer will take to make a purchasing decision.
• A standard model of consumer purchase decision-making includes recognition of needs and wants, information search, evaluation of choices, purchase, and post-purchase evaluation.

The Buying Process:

The correct answer is It allows employees to share ideas and concerns

Key Points Open communication is crucial in the workplace for several reasons:

Improved Collaboration: Open communication encourages team members to share ideas, feedback, and insights. This leads to better collaboration, as employees can work together more effectively, leveraging diverse perspectives to solve problems and achieve common goals.

Enhanced Problem Solving: When communication channels are open, issues and challenges can be identified and addressed more quickly. Team members can openly discuss problems, brainstorm solutions, and collectively find effective ways to overcome obstacles.

Increased Transparency: Open communication fosters transparency within an organization. When employees are informed about company goals, strategies, and decisions, they feel more engaged and trusted, which can boost morale and job satisfaction.

Stronger Relationships: Open communication builds trust and rapport among team members. When people feel comfortable sharing their thoughts and concerns, relationships are strengthened, leading to a more positive and supportive work environment.

Effective Leadership: Leaders who practice open communication are perceived as approachable and responsive. Employees are more likely to follow leaders who are transparent and communicate their expectations clearly, leading to better alignment and a more motivated workforce.

The correct answer is ​Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Key Points

Assertion: Relying heavily on digital communication may hinder the development of genuine connections.

Explanation: Digital communication, such as text messages, emails, or social media interactions, lacks the richness of face-to-face communication. It may lead to a sense of detachment and impersonality, making it harder for individuals to establish deep, meaningful connections with others. Genuine connections often require emotional bonding and understanding, which can be challenging to achieve solely through digital means.

Reason: The absence of non-verbal cues in digital communication can lead to misinterpretations and misunderstandings.

Explanation: Non-verbal cues, such as facial expressions, body language, tone of voice, and eye contact, play a crucial role in human communication. These cues help convey emotions, intentions, and context, allowing people to better understand each other's feelings and intentions. In digital communication, these cues are mostly absent, leading to potential misinterpretations of messages and misunderstandings between individuals. A simple text message can be interpreted in various ways without the accompanying non-verbal cues to clarify the sender's true intent.

The correct answer is A, C and E only.

Key PointsThe correct answer is A, C, and E only.

John Maynard Keynes proposed four motives for holding cash in his book "The General Theory of Employment, Interest, and Money". These motives are:

• Transaction motive: People hold cash to meet their day-to-day expenses. This is the most common motive for holding cash.
• Precautionary motive: People hold cash to guard against unexpected expenses or emergencies.
• Speculative motive: People hold cash to take advantage of investment opportunities.
• Finance motive: People hold cash to make future payments, such as taxes or loan repayments.

However, the finance motive is not widely accepted by economists today. They argue that people can use other assets, such as bonds, to meet their future payment needs.

Important Points So, the three motives that are still widely accepted are the transaction motive, the precautionary motive, and the speculative motive.

• The transaction motive is the most important motive for holding cash. It is determined by the level of economic activity. When economic activity is high, people need to hold more cash to meet their day-to-day expenses.
• The precautionary motive is determined by the level of uncertainty in the economy. When people are more uncertain about the future, they are more likely to hold more cash to guard against unexpected expenses.
• The speculative motive is determined by the expected return on alternative investments. When the expected return on alternative investments is low, people are more likely to hold more cash in anticipation of higher returns in the future

The correct answer is Gold Jewellery.

Key Points

• GST is known as the Goods and Services Tax.
• It is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc.
• The Goods and Service Tax Act was passed in Parliament on 29th March 2017 and came into effect on 1st July 2017.
• Products that are exempted from GST are:
  • Alcohol
  • Petroleum products
  • Vegetables
  • Honey, etc

Additional Information

• GST was introduced by the 101^st Constitutional Amendment Act.
• GST was the 122^th Constitutional Bill.
• GST was introduced by then Finance Minister Arun Jaitley.
• The present Finance Minister of India is Nirmala Sitharaman.

Price level Accounting or inflation accounting refers to the adjustment of financial statements of the company as per price indexes cause the historical figures and book values of the statements are no longer of any significance.

The correct answer is Facilitating credit flow for the promotion and development of agriculture.

• The full form of NABARD is National Bank for Agriculture and Rural Development.
• NABARD was established on 12th July 1982.
• NABARD provides and regulates credit and other facilities for the development and promotion of agriculture, small-scale industries, village industries, handicrafts, cottage industries, etc.
• The Head office of NABARD is in Mumbai.
• The following are the important functions of NABARD:
  • Promotion and development of rural areas.
  • Financing and refinancing of agriculture.
  • Monitoring coordination with various institutions and agencies and credit planning.
  • Direct lending to producer's organization and cooperatives.
  •  Facilitating credit flow for the promotion and development of agriculture.

Image of NABARD Logo:

The incorrect answer is Rebate under section 80TTA will be admissible even if the person has opted for the alternate taxation scheme under section 115BAC.

Key Points

Section 80TTA – Claim Tax Deduction on Savings Account Interest

• If you opt for new tax regime, you will not be able to claim any tax deductions under section 80.
• Deduction under section 80TTA can be availed of only in the old tax regime.

Important PointsStatement I: Donation to the National Children's Fund is 100% tax deductible under section 80G.

• This statement is correct because under section 80G, some of the donations eligible for 100% deduction without qualifying limit are:
• National Defence Fund set up by the Central Government
• Prime Minister’s National Relief Fund
• National Foundation for Communal Harmony
• An approved university/educational institution of National eminence
• National Illness Assistance Fund
• National Blood Transfusion Council or to any State Blood Transfusion Council
• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
• National Sports Fund
• National Cultural Fund
• Fund for Technology Development and Application
• National Children’s Fund
• Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
• The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996

Statement II: Medical insurance premium paid by any mode other than cash is eligible for deduction under section 80D.

• This statement is correct because the payment method of the medical insurance premium and medical expenses must be made using a method other than cash in order to qualify for a deduction under Section 80D.

Statement III: Rebate under section 80TTA will be admissible even if the person has opted for the alternate taxation scheme under section 115BAC

• This statement is incorrect because under section 80TTA, you cannot claim rebate if you opt for the new tax regime under Section 115BAC.

Statement IV: Section 80U deals with exemption in respect of person with disability.

• This statement is correct because the disabled person is eligible for a deduction under Section 80U of the income tax. This part offers a flat discount to the disabled individual based on the severity of their disability, regardless of the cost.

Hence, it can be concluded that only statement III is incorrect.