Upto FY 2016-17 donation in cash can be given upto a limit of Rs. 10,000 u/s 80 G. So how, limit is computed, is it payment wise or donee wise.
Please give the answer in following case:
Donation given in cash of Rs. 9000 4 times to a trust aggregating to Rs. 36000 in a FY. How much donation is eligible u/s 80 G?
Please answer giving relevant legal provisions supporting your answers.
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How to Compute limit of donation under Section 80 G?
Replies (4)
"Donation given in cash of Rs. 9000 4 times to a trust aggregating to Rs. 36000 in a FY. How much donation is eligible u/s 80 G?"
Ans.: Rs. 10,000/-
Reference: Sec. 80G sub-sec.(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash.
And if we give donation of Rs. 9,000 each in cash to 4 different trusts,
Whether it is allowed?
Whether it is allowed?
No. The deduction u/s. 80G is allowed to donor (and not receiver specific). It means the cap is over donor.
If in this case Donation is allowed to Donor u/s 80 G on giving to 4 different trusts, why will it not be allowable in case if given to same trust 4 times? Section 80 G nowhere mentions that it should be given not to same person in cash for more than 10,000.00
It only says Donations exceeding 10000 in cash. It means it is payment wise..
What's your opinion?
It only says Donations exceeding 10000 in cash. It means it is payment wise..
What's your opinion?
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