Prohibition of cash donations in excess of ten thousand rupees

Section 80G of the Income-tax Act provides for a deduction in respect of donations to certain funds, charitable institutions, etc. subject to specified conditions. The deduction is allowed in respect of any donation being a sum of money. Similarly, section 80GGA of the Income-tax Act provides for a deduction in respect of certain donations for scientific research or rural development made to research associations, universities, colleges or other associations/institutions, subject  to  specified conditions.

Currently, there is no provision in either of the aforesaid sections specifying the mode of payment of money. Therefore, it is proposed to amend sections 80G and 80GGA so as specify therein that any payment exceeding a sum of ten thousand rupees shall only be allowed as a deduction if such sum is paid by any mode other than cash.

These  amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to  assessment year 2013-14  and subsequent assessment years.

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0 responses to “Deduction for Donation not allowed for cash donations in excess of ten thousand rupees”

  1. Rajaram says:

    Sir, If a person makes aggregate donation of more than Rs.10000 in a year but the donation at any one time is less than Rs.10000 whether this clause is hit by this type of donation ? 

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