Sampath Kumar P (Accounts Manager) (32 Points)
22 June 2019A Charitable Trust is registered u/s 12A of Income Tax and used to receive cash of Rs. 10000 onwards as Donations . Is there any restriction to accept CASH DONATION more than Rs. 2000/- ?
Sunayana Shastri
(student)
(129 Points)
Replied 22 June 2019
No restriction for acceptance; but donor cannot get 80G deduction for more than rs. 2000/- when donated by cash.
Sampath Kumar P
(Accounts Manager)
(32 Points)
Replied 22 June 2019
Thank you for your replay,
The donor is not interest for 80G Deduction. But the trust can accept Rs.1Lakh in Cash on corpus Fund of Trust from the single Donor?
Kindly highlight
Regards,
Sampath
Sunayana Shastri
(student)
(129 Points)
Replied 22 June 2019
Yes, with known identity of the donor.
A charitable or religious institution has substantial source of receipts in form of donations. Such donations may be corpus or voluntary. The Income Tax Law provides blanket exemption to corpus contributions whereas it requires application of voluntary contributions in general for charitable or religious purposes.
Read more at. https://www.linkedin.com/pulse/acceptance-cash-donations-charitable-religious-trusts-anoop-bhatia
Sampath Kumar P
(Accounts Manager)
(32 Points)
Replied 24 June 2019
Thank you for your replay.
the link sent by you was most helpful
regards,
sampath
CAclubindia
