Question

Deduction under Section 80G on account of donation is allowed to :

• A. A business assessee only
• B. Any assessee
• C. An individual or HUF only
• D. An individual only

Hint:

Section 80G does not limit the deduction to one class of taxpayer. Any assessee who makes an eligible donation can claim it.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Section 80G gives a deduction from Gross Total Income for donations made to approved funds and charitable institutions. The deduction reduces the taxable income of the donor.

Step 2: Who can claim it:
The section does not limit the benefit to one type of taxpayer. Any assessee who pays a qualifying donation can claim it.
This covers individuals, HUFs, firms, companies and other assessees.

Step 3: Check option (A) and option (C):
Option (A) says a business assessee only. A salaried person can also donate and claim 80G, so (A) is wrong.
Option (C) says an individual or HUF only. A company or a firm can also claim 80G, so (C) is wrong.

Step 4: Check option (D):
Option (D) says an individual only. This leaves out HUFs and all other assessees, so (D) is wrong.

Final Answer:
Section 80G deduction is allowed to any assessee who makes an eligible donation. This is option (B).