Monday, 3 December 2012

In Cash Transaction Donation is not eligible exceeding Rs. 10000/- u/s. 80G

Exemption of Donation u/s. 80G provides by Income Tax Law to Taxpayee who will donate in amount by Cash or in Other Transactions in respect to donate Funds to Charitable Trust or Institutions etc. subject to conditions.   The fund donates to Charitable Trust or Institution by Taxpayee.  The charitable Trust or Institution are approved u/s. 80G(5)(vi) of Income Tax Act, 1961.  It may further be noted that, the full amount is not eligible for deduction from Income while submission of Annual Return to Income Tax Department by Taxpayee.  The deduction admissible is @ 100% or 50% of the donation amount depending upon the fund/ institutions to whom the donation is done. The total deduction u/s 80G is restricted to a maximum of 10% of the adjusted gross total income. If the receipt of Donation reveals the fact of approval of the said trust U/s 80G(5)(vi), then you can claim deduction. Recently, by the Finance Act-2012, Section 80G has been amended so as to provide that payment exceeding Rs. 10,000/- will be allowed as deduction u/s 80G only if such is paid by any mode other than cash. You may note that the limit of Rs. 10,000/- is not applicable on aggregate basis but is applicable on individual basis. If one makes a donation of an amount equal to or less than Rs. 10,000/- to one or more than one trust then the deduction would not be denied. But, if the cash donation in an amount exceeding Rs. 10,000/- at a stroke is made to any particular trust then the deduction would not be admissible

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