Deductions Under Chapter VIA - 2 Video Lecture | Commerce & Accountancy Optional Notes for UPSC

1. What are the different deductions available under Chapter VIA Part 2 for taxpayers?$#
Ans. Some of the deductions available under Chapter VIA Part 2 for taxpayers include deductions for investments in specified savings schemes, contributions to the National Pension Scheme, and payments towards health insurance premiums.

2. Can an individual claim deductions under Chapter VIA Part 2 for both investments and expenses?$#
Ans. Yes, an individual can claim deductions under Chapter VIA Part 2 for both investments in specified schemes like PPF and expenses such as health insurance premiums, up to the limits prescribed by the Income Tax Act.

3. Are there any restrictions on the total amount of deductions that can be claimed under Chapter VIA Part 2?$#
Ans. Yes, there are limits on the total amount of deductions that can be claimed under Chapter VIA Part 2. Taxpayers must ensure that they do not exceed the prescribed limits while claiming deductions for investments and expenses.

4. Is it mandatory to provide proof of investments and expenses while claiming deductions under Chapter VIA Part 2?$#
Ans. Yes, it is advisable to keep proof of investments and expenses such as receipts, statements, and certificates while claiming deductions under Chapter VIA Part 2. The Income Tax Department may ask for these documents during assessments.

5. Can deductions under Chapter VIA Part 2 reduce the taxable income to zero?$#
Ans. Deductions under Chapter VIA Part 2 can reduce the taxable income to zero if the total deductions claimed are equal to or more than the total taxable income. In such cases, the taxpayer may not have to pay any income tax for that financial year.