Question

Donation offered by a person is deductible under ___________ of the Income Tax Act, 1961.

• A. Section 80E
• B. Section 80D
• C. Section 80C
• D. Section 80G

Hint:

Think about which Chapter VI-A section deals with gifts to charity. The other sections cover loans, insurance and investments.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
Chapter VI-A of the Income Tax Act, 1961 lists deductions from Gross Total Income. Each section covers one type of payment.

Step 2: Match the payment to the section:
A donation to an approved fund or charitable institution is covered by Section 80G.
The deduction is a fixed percentage of the donation, either 100% or 50%, with or without a qualifying limit.

Step 3: Why the other sections are wrong:
Section 80E covers interest paid on a loan taken for higher education. It has nothing to do with donations.
Section 80D covers health insurance premium and medical expenses.
Section 80C covers investments and payments such as PPF, life insurance premium and tuition fees.

Final Answer:
Donation is deductible under Section 80G. This is option (D).