A_B_B (Compliance) (55 Points)
12 July 2019I have made monthly 2000 rs cash donations to one single charitable institute for 3 months. Can I claim 2000 Rs each exemption as 3 line items for respective months in ITR (under 80G section), totalling upto 6000 Rs?
Saket Mishra
(367 Points)
Replied 12 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 13 July 2019
1. According to sec 80G(5D), no person should make a donation in excess of Rs. 2,000 in cash. However, unlike in sec 43A(3), there is no clear mandate on whether this Rs. 2,000 limit is applicable for a day or on an aggregate basis between the donor and the donee.
2. But from a conceptual angle, the above donations should be on an aggregate basis and not on a daily basis. The overall point in making such a provision is to curb the transaction in cash which is usually high in contributing to donations to various institutions, funds or trust. This provision cannot be interpreted from a liberal angle.
3. Hence, a person cannot make a donation in excess of Rs. 2,000 in cash in a year to an institution, trust or a fund.
4. In your case the entire Rs. 6,000 will not be allowed as deductions u/s 80G.
Please correct me if the above interpretation has an alternative view.
A_B_B
(Compliance)
(55 Points)
Replied 13 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 13 July 2019
1. Yes, I am aware of that. You can add line items and enter 2,000 in each column to the same Donee. And claim Rs. 6,000.
2. Sometimes provisions are left for interpretations. This is one of those cases.
CAclubindia
