Disbursement of scholarships in cash - very urgent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2011 Dear experts ,
One of the Charitable trust regd. u/s 80G used disburse scholarships to poor & meritorious students every year. This year they want to distribute the scholarships on a particular date (say Dec.1st) in cash to 1000 students . It amounts to nearly some lakhs.
Can the company disburse the scholarships in cash in a single day without any limit.
please clarify my doubt.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 December 2011 It is not denied by the law. It should be in accordance with the Trust Deed -objects.
Up to a reasonable amount cash scholarships can be given to the students through their schools.
.
In case it want to give Scholarship of Rs 100000/ to each student it is better to provide the same by cheque. The Trust may help the students in opening the Bank Accounts also.
.

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2011 thank you sir

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