Maximum cash allowed under religious trust

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.

Maximum cash allowed under reigious trust.

Sec 269ST IS APPLIED.

There is no general ₹9,000 cash limit for a religious charitable trust. The applicable restriction depends on the transaction: under section 40A(3), a business expenditure payment above ₹10,000 to one person in one day is generally disallowed; for payments to a transporter, the threshold is ₹35,000. These are income-tax deduction rules, not a blanket cap on cash receipts or trust spending.

For donations, section 269ST generally prohibits a person from receiving ₹2 lakh or more in cash in a day, for one transaction, or for transactions relating to one event or occasion; specified exceptions apply. The trust’s 12A registration does not itself create a ₹9,000 limit. The answer can differ for a purchase, expense, donation receipt, loan or deposit, so identify the transaction before applying the relevant rule.

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Cash donations to a religious trust:

• There's no cap on cash donations a trust can receive, but: donors get 80G only for cash up to Rs 2,000; Sec 269ST bars receiving Rs 2 lakh or more in cash from a person in a day or per event; and the trust must record donors' details (Form 10BD reporting for 80G donors).

• Anonymous donations to wholly religious trusts are exempt from the 30% tax under 115BBC; for religious-cum-charitable trusts, anonymous donations beyond specified limits (5% of total donations or Rs 1 lakh) are taxed at 30%.