Consider the following statements regarding the National Defence Fund (NDF): 1. The National Defence Fund was established in 1962 to promote the national defence effort and administer voluntary donations in cash and kind. 2. The Finance Minister is the Chairperson of the Executive Committee overseeing the administration of the NDF. 3. Contributions made to the National Defence Fund are exempt from income tax under section 80(G) of the Income Tax Act. Which of the statements given above are correct? |ForumIAS

[A] 1 and 3 only

[B] 1 only

[C] 2 and 3 only

[D] 1, 2, and 3

Answer: A

Notes:

Explanation:

Statement 1 is correct: The NDF was established in 1962 with the objective to take charge of voluntary donations for the national defence effort and decide their utilisation, mainly for the welfare of the Armed Forces and their dependents.
Statement 2 is incorrect: The Prime Minister is the Chairperson of the NDF’s Executive Committee, not the Finance Minister. The Finance Minister is the Treasurer of the Fund.
Statement 3 is correct: Contributions to the National Defence Fund are exempt from income tax under section 80(G) of the Income Tax Act.

Source- IE