Venkat and Co. engaged in trading activity gave ₹1 lakh as donation to Deference Research and Development Organisation. How much of the amount given as donation is eligible for deduction while computing its income under

CS Executive · Tax Laws · PYQS · June 2023
Venkat and Co. engaged in trading activity gave ₹1 lakh as donation to Deference Research and Development Organisation. How much of the amount given as donation is eligible for deduction while computing its income under the head "Profits and gains of Business or Profession"?
(A) Nil
(B) ₹50,000
(C) ₹1,00,000
(D) ₹1,50,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A), (C). Official source note: There is a typo error in the question paper written as "Deference" instead of "Defence". Option C is correct assuming it is an approved scientific research organisation under section 35 of the Income tax Act, 1961. Option A is correct assuming it is not an approved scientific research organisation under section 35 of the Income tax Act, 1961.

Topics: Income Tax Act, 1961

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