Question 7 of 7
Which section of the Income Tax Act provides tax benefit for certain investments, effectively increasing the return on investment after considering the net amount invested?
A
Section 80C
B
Section 10(38)
C
Section 112A
D
Section 111A
Correct Option:
A
Explanation
Section 80C of the Income-tax Act provides tax deductions for eligible investments, subject to the prescribed limits. By reducing taxable income, it lowers the investor's tax liability and effectively improves the post-tax return on the amount invested.