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

Which statement about the claim of deduction under section 133 for a donation to an institution or fund under section 133(1)(b)(ii) is correct?

The claim is allowed only on the basis of donation information furnished by the institution or fund to the prescribed authority, and it is subject to verification under the Board's risk management strategy, as provided in section 133(6). A donor's own receipt alone is not enough.

  1. AIt is allowed only on the basis of information about the donation furnished by the institution or fund to the prescribed authority, and is subject to verification under the risk management strategyCorrect
  2. BIt is allowed solely on the donor's own receipt, with no verification
  3. CIt is allowed even if the donation is made in kind, such as goods
  4. DIt can be claimed again under another provision of the Act for the same sum

Explanation

Section 133(6) ties the claim for section 133(1)(b)(ii) donees to information furnished by the institution or fund to the prescribed authority, and makes it subject to verification per the Board's risk management strategy. Section 133(4) permits only a sum of money, not goods. Section 133(3) bars claiming the same sum under another provision.

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