Master in Accounts & high court Advocate
9615 Points
Posted on 22 January 2025
To clarify, you're asking about the limit on cash donations that an educational institution can receive from the public:
Scenario 1: Institution has 12A and 80G registration - *Cash donation limit*: ₹2,000 per donor (as per Section 80G(5)(iii) of the Income-tax Act, 1961)
,Scenario 2: Institution has 12A registration but not 80G registration - *Cash donation limit*: ₹2,000 per donor (as per Section 80G(5)(iii) is not applicable, but as per Section 269SS and 269T, cash transactions exceeding ₹2,000 are prohibited)
However, it's essential to note that: 1. *Section 269SS*: Prohibits a person from taking or accepting cash exceeding ₹2,000 from any person in a single day. 2. *Section 269T*: Prohibits a person from repaying any loan or deposit exceeding ₹20,000 in cash.
To avoid any complications, it's recommended that the institution: 1. *Registers under Section 80G*: To avail the benefits of tax exemption for donors. 2. *Maintains proper records*: Of donations received, including the donor's name, address, PAN, and amount donated. 3. *Complies with income tax regulations*: Ensures compliance with all income tax regulations, including filing of income tax returns and payment of taxes, if applicable.