Sec 40A(3)

Before FY 2018-19, there were no restrictions on payments made in cash by charitable or religious trusts or institutions.

Now, from FY 2018-19 and onwards, the said section has been made applicable.

Following Explanation 3 has been inserted after Explanation 2 to sub-section (1) of section 11 by the Finance Act, 2018:

For the purposes of determining the amount of application under clause (a) or clause (b), the provisions of sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) of section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head "Profits and gains of business or profession.