donation

Tax to be charged on payments in excess of Rs 10,000

donation
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From assessment year 2013-14 onwards, payments made in respect of donations to specified funds and institutions as specified in section 80G and donations made for the purpose of scientific research or rural development to research associations, universities, colleges or other associations or institutions subject to specified conditions (80GGA), any payment made in excess of Rs 10,000 in cash will not be allowed as deduction.

Previously, there was no such condition regarding mode of payment (whether in cash or cheque, draft etc..).

Thus, in order to claim deduction u/s 80G & 80GGA payments are to be made in mode other than cash(such as cheque, draft, etc..),if the amount of donation is more than Rs 10,000. If the amount of donation is less than Rs 10,000 payment in cash is sufficient to claim deduction u/s 80G & 80GGA

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