Skip to content

CA Intermediate · Taxation · Deductions from Gross Total Income

Rohan Mehta, a resident individual, opted for the old tax regime for tax year 2026-27. He donated Rs 40,000 in cash to a registered charitable trust eligible for a 50% deduction subject to the qualifying limit, and Rs 30,000 by cheque to the Prime Minister's National Relief Fund. His gross total income is Rs 6,00,000, there are no other deductions, and the tax-year income exempt-type adjustments are nil. What is the total deduction for donations?

The deduction is Rs 30,000. The cash donation of Rs 40,000 exceeds the Rs 2,000 cash limit and is disallowed entirely, while the cheque donation of Rs 30,000 to the Prime Minister's National Relief Fund qualifies at 100% with no qualifying limit.

  1. ARs 15,000
  2. BRs 50,000
  3. CRs 35,000
  4. DRs 30,000Correct

Explanation

Cash donations above Rs 2,000 do not qualify, so the Rs 40,000 trust donation gives nil. The PM National Relief Fund donation qualifies for 100% without a qualifying limit, giving Rs 30,000 (cheque payment). Total is Rs 30,000. Rs 50,000 wrongly allows 50% of the cash donation plus Rs 30,000.

Did you get it right without looking?

One question tells you little. A timed set on Deductions from Gross Total Income shows your real accuracy, how long you take and where you lose marks.

Practise Deductions from Gross Total IncomeFree diagnostic mock

More Deductions from Gross Total Income questions