As we all know that to curb the black money and to provide cashless economy, Finance Act, 2017 amended section 80G so as to provide that no deduction shall be allowed under the section 80G in respect of donation of any sum exceeding Rs. 2,000/- unless such sum is paid by any mode other than cash. Earlier this limit was Rs. 10,000/-.

Therefore, this article is kind of reminder of the same since many people used to make donation to get benefit in Income Tax return under Section 80G. So please keep this very important point in mind if you are paying through cash.

Section 80G No deduction if donation in cash exceeds Rs. 2000

The extract of relevant sub-sections of 80G is as under:

“Deduction in respect of donations to certain funds, charitable institutions, etc.

80G (5C) This section applies in relation to amounts referred to in clause (d) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpose and it fulfils the following conditions, namely :—

  (i) it is approved in terms of clause (vi) of sub-section (5);

 (ii) it maintains separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat;

(iii) the donations made to the trust or institution or fund are applied only for providing relief to the earthquake victims of Gujarat on or before the 31st day of March, 2004;

(iv) the amount of donation remaining unutilised on the 31st day of March, 2004 is transferred to the Prime Minister’s National Relief Fund on or before the 31st day of March, 2004;

 (v) it renders accounts of income and expenditure to such authority and in such manner as may be prescribed, on or before the 30th day of June, 2004.

(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding two thousand rupees unless such sum is paid by any mode other than cash.”

Republished with Amendments

More Under Income Tax

9 Comments

  1. kritika sharma says:

    during Fy 2018-19 cash donation Rs. 5000 and donation with cheque 10000.00 to PM care fund and donation to unregistered trust Rs. 5000.00 with cheque. What amount of deduction?

  2. CA Mihir Kumar sahu says:

    Can a trust issue 80G certificates to a group of 30 donors who donate 7500 each having individual pan no.And can they avail deduction u/s 80 G.Thanks

  3. khajamiya says:

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

    if it take effect from 01.04.2013 then the assessment year would be 2014-15 , please see the comment some where some mistake may i am worng.

  4. S Sudarshana says:

    If cash donation in an year is Rs.9000 and cheque donation is Rs.5000, deduction will be for Rs.14,000. If the cash donation by cash is Rs.11000 and chque donation is rs.5000, deduction will be for Rs.10000 plus 5000, i.e. Rs.15,000/- Donation made above Rs.10000 by cash will be restricted to Rs.10000/-

  5. parveen gupta says:

    agar hum kisi ko monthly donation 1100/- 80g main paid kar rahe hain to us per rebate milega ya nahi kyoni yeh yearly 10000/- se jyada ho jayega 

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