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Maximum cash allowed under religious trust

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R K

11 Points Posted on 28 March 2025

We are a religious charitable trust based out of karnataka. We are registered under 12A. What is the maximimum amount allowed to be taken in cash? Is it INR 9000

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Quick Summary

This discussion clarifies the maximum cash amounts a religious charitable trust, registered under 12A in Karnataka, can handle. While donors can only claim 80G deductions for cash donations up to ₹2,000, the trust itself can receive up to ₹1,99,999 in cash under Section 269ST. It's also noted that Section 40A(3) may disallow payments exceeding ₹10,000 for trusts liable for audit.

M S Tekkur

CHARTERED ACCOUNTANT

10 Points Posted on 29 March 2025

As per the provisions of income tax act, to claim 80G deduction a donor has to pay donation in specified mode only but upto rs 2000.00 can be paid through cash.

For receiving donation in cash a trust can receive upto Rs.199999.00 as per the provision of 269ST.

There is no such threshold limit of Rs 9000.00

But as per the provision of 40A(3) a person who is liable to audit under income tax act can not pay above 10000.00. it will be disallowed and added back. For trust it will not be treated as an application.