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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Corporate Tax Planning

Sunrise Textiles Ltd, an Indian company, is planning its donations for the year. It wants the full amount to be deductible while computing total income, with no ceiling linked to its income. Under section 133 of the Income-tax Act, 2025, to which of the following would a donation by way of a non-cash payment qualify for deduction of the whole amount?

A donation to the Prime Minister's National Relief Fund is deductible in full under section 133(1)(a). The other recipients listed are covered by section 133(1)(b), which allows only 50% of the amount and applies the 10% adjusted gross total income ceiling.

  1. AThe Prime Minister's National Relief FundCorrect
  2. BA registered charitable trust approved under section 354, for a charitable purpose
  3. CThe Government, to be used for any charitable purpose other than family planning
  4. DA corporation set up by a State Government for a notified minority community

Explanation

Section 133(1)(a) allows the whole of the sum paid to listed funds, including the Prime Minister's National Relief Fund. The other three recipients fall under section 133(1)(b), where only 50% of the donation is allowed, and they are subject to the 10% ceiling in section 133(2).

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