For the tax year 2026-27, an individual who has opted out of the default new tax regime donated, by…
Taxable income is ₹ 6,10,000. Section 133 of the Income-tax Act, 2025 allows a deduction of 100% of the donation to the Prime Minister’s National Relief Fund (₹ 50,000) and…
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For the tax year 2026-27, an individual who has opted out of the default new tax regime donated, by cheque, ₹ 50,000 to the Prime Minister’s National Relief Fund and ₹ 30,000 to the Prime Minister’s Drought Relief Fund. Gross Total Income of the assessee is ₹ 6,75,000. Taxable Income of the assessee on the basis of above information only is
Answer and explanation
Correct answer A
Taxable income is ₹ 6,10,000. Section 133 of the Income-tax Act, 2025 allows a deduction of 100% of the donation to the Prime Minister’s National Relief Fund (₹ 50,000) and 50% of the donation to the Prime Minister’s Drought Relief Fund (₹ 15,000), a total of ₹ 65,000, so ₹ 6,75,000 − ₹ 65,000 = ₹ 6,10,000. Under the default new tax regime this deduction is not available.
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West Bengal SET (WB SET)