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deduction 80G

Sachin Grover (Audit Assistent) (30 Points)

25 July 2017

If assessee made donation of Rs. 8500 in cash to 8 charitable organisations each. Whether it is allowable or not. Whether there is any impact of Rs. 10000 limit for cash donation??? Whether 68000 is allowable as deduction u/s 80G??

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upasana gupta (Finance Professional) (3931 Points)
Replied 25 July 2017

Mode of Payment – This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.

From Financial Year 2017-18 onwards – Any donations made in cash exceeding Rs 2000 will not be allowed as deduction. Thus the donations above Rs 2000 should be made in any mode other than cash to qualify as deduction u/s 80G.

Poltu Ghosh (Job) (1865 Points)
Replied 25 July 2017

Section 80G (5D) : No deduction shall be allowed under this section in respect of donation of any sum exceeding 36[ten] thousand rupees unless such sum is paid by any mode other than cash. The wordings of the section suggest that overall deduction cannot exceed Rs. 10000 for cash donation. So in your case Rs. 68000 will not be allowed as deduction. Only Rs. 10000 will be allowed. Contrary opinion cannot be ruled out.