Question: Mr. A deposits Rs 1,20,000/- in a previous year to effect a contract for the deferred annuity on his life, with a view to receive a cash payment of Rs. 40,000/- in lieu of that payment of annuity in the same previous year. Determine the amount of deduction Mr. A can avail under Chapter-VIA of Income Tax Act, 1961:
(a) Rs. 1,20,000/-
(b) Rs. 1,00,000/-
(c) Rs. 40,000/-
(d) Rs. 80,000/-
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