Are donations paid to trusts allowed as business expenses?
cash payments for rates and taxes more than 10k to government allowed?
cash payments for land Registration payment to government more than 10k allowed?
Cash payments more than limit
Replies (5)
Quick Summary
1. Depends if the trust is having certificate under sec. 80G to receive donations. Otherwise not.
2. Yes.
3. Yes.
Not sec 80G
wrong section.
right section is 12AA
wrong section.
right section is 12AA
There is no exception when Payments for fixed assets purchase more than 10k when paid to government but for revenue expenses rule6DD is applicable
If at the site expenses are paid by staff out of PhonePe single transaction around 1lac and the same given to him in cash from company,is it disallowance of 40A(3),there are no supporting bills
Two points:
• Donations to trusts aren't business expenses (not wholly and exclusively for business). They may be deductible under 80G (if the trust is approved, cash only up to Rs 2,000), not under Sec 37. Only CSR-type company donations to their own projects are handled under specific rules.
• Rates and taxes paid in cash to government above Rs 10,000: Rule 6DD(b) exempts payments to the Central or State Government made in legal tender, where required by rules to be paid in cash. Most government payments now are electronic. If the department accepts only cash, 40A(3) doesn't apply. If electronic payment was possible, the AO may disallow. Keep the receipt showing a government payee.
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