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    Question

    The Atal Pension Yojana (APY) is a contribution-based pension scheme. Which of the following statements incorrectly describes the tax benefits associated with APY contributions?

    A Contributions to APY are eligible for tax deductions under Section 80CCD of the Income Tax Act. Correct Answer Incorrect Answer
    B Contributions made to APY are fully exempt from income tax. Correct Answer Incorrect Answer
    C The maximum deduction available for APY contributions is ₹50,000 under Section 80CCD(1B). Correct Answer Incorrect Answer
    D APY contributions can be claimed as part of overall deductions under Section 80C and 80CCD. Correct Answer Incorrect Answer
    E The tax benefits are similar to those available under the National Pension Scheme (NPS). Correct Answer Incorrect Answer

    Solution

    While contributions to APY are eligible for deductions under Section 80CCD, they are not fully exempt from income tax. The scheme follows similar tax benefits as NPS.

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