Refer Provision of Sec. 12Ka in Page 151 of the Book Question 2- Page 151 As per Sec. 12 (1), in case a person makes donation or provides gifts to any Tax Exempt Organization approved from Inland Revenue Department during any Income Year, the amount of such donation or gift is deductible while calculating taxable income of such person. As per Sec. 12 (2), the limit of such donation or gift shall not exceed the minimum of following two: a. Rs. 100,000 b. 5% of Adjusted Taxable Income However, Sec. 12 (3) has given an unconditional right to GON to increase the limit mentioned in subsection 2 of Sec. 12 to such extent as specified in a notification published for the purpose by GON in Nepal Gazette. As such, since Mr. Sumendra Pradhan is a person (as person includes both natural person and entity, and Mr. Pradhan is covered by the definition of natural person), the donation to an exempt organization by Mr. Pradhan is deductible subject to the provisions of Sec. 12 (2) and Sec. 12 (3) of the Act. For this purpose, Mr. Pradhan shall submit income return (joint reading of Sec. 4 (3) and Sec. 97 (1))