Donation limit to a Temple in the shape of Cash

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A trust building a temple is seeking guidance on accepting cash donations. For tax exemption under 80G, cash donations up to £2,000 are permissible, but larger amounts require cheques or bank transfers. If the trust isn't registered for 80G, it can accept non-anonymous cash donations below £2 lakh per transaction, though anonymous donations over £50,000 may incur a 30% tax.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)

22 April 2025 one of the trust is being constructing a temple at Ramagundam, for which they are in need of money to build construct said temple,

(1) can they accept cash
(2) what is the procedure of providing exemption certificate to donors for the donations given

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

22 April 2025 Cash donations ≤ ₹2,000 can be accepted for 80G claim.
Donations > ₹2,000 must be via cheque/bank transfer for 80G deduction.
80G approval is mandatory for donors to claim tax benefits.

For non 80G registered trust:
If cash donations are not anonymous and below ₹2 lakh per transaction, the trust can accept them. However, anonymous donations exceeding ₹50,000 may attract 30% tax.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 September 2025 Good luck.....

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