Deduction for Donation

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This query is : Resolved

CA Aditya Goel (Querist)

26 December 2009 sir,
If the Company pays Rs. 300000 in cash to a trust or assocation as donation for poor children.
But the receipt can not be obtained from that trust or assocaiton but they are ready to give it in written in their letter head.
can this be allowed as business expenditure under income tax act?

Arjuna Raina

Arjuna Raina (Expert)

26 December 2009 It will not be allowed as business expenditure.IF he discloses on the letter pad that the trust/association is registered and eligible for ded u/s 80G he can get the deduction

CA H M JOHARI

CA H M JOHARI (Expert)

26 December 2009 No, Donation is not allowed as business Expenditure.

Moreover any donation above Rs. 500/- should be made by Crossed Cheque and Donee Organisation must have expemtion certificate from IT Dept.

Donation is allowed as deduction under chapter VI A of IT act under section 80 G

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

27 December 2009 If Private Organization theri should be any IT Exemption Certificate like 80G,etc,. and if govt.there is always a free way. but in your cash you have to pay by cross cheque above Rs.500/- donation & also organization 80G receipt or in Letterhead with 80G stamp. of the Org.