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

The board of Orchid Foods Ltd has claimed a deduction under section 133 of the Income-tax Act, 2025 for a donation and now proposes to claim the same sum again under another provision of the Act in the next tax year. What is the position?

The second claim is not allowed. Section 133(3) provides that once a donation sum has been claimed and allowed under section 133, it cannot qualify for deduction under any other provision of the Act in the same or any other tax year.

  1. AAllowed, since it is a different tax year
  2. BAllowed only if the other provision gives a lower deduction
  3. CAllowed only with the approval of the Board
  4. DNot allowed, because a sum allowed under section 133 cannot qualify under any other provision for the same or any other tax yearCorrect

Explanation

Section 133(3) states that where a deduction is claimed and allowed for a sum under this section, that sum cannot qualify for deduction under any other provision for the same or any other tax year. Hence a second claim in the next year is barred.

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