Restricting cash donations under Section 80G of Income Tax w.e.f AY 2018-19

By | February 23, 2018
(Last Updated On: February 23, 2018)

CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL]DATED 15-2-2018

39. Restricting cash donations.

39.1 Before amendment by the Act, section 80G of the Income-tax Act provided that the deduction shall not be allowed in respect of donation made of any sum exceeding Rs.10,000, if the same was not paid by any mode other than cash.

39.2 In order to provide cash less economy and transparency, section 80G of the Income-tax Act has been amended so as to provide that no deduction shall be allowed under the section 80G in respect of donation of any sum exceeding two thousand rupees unless such sum is paid by any mode other than cash.

39.3 Applicability: This amendment takes effect from 1st April, 2018 and will, accordingly, apply from assessment year 2018-19 and subsequent years.

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