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Cash Payment more than 10000 made,it was disallowed while calculating business Income

However this Rule was not applicable for Charitable and Religious Trust (since they do not have business income)



For Charitable and Religious trusts,also this Rule is applicable

As per Section 11,If Income of these trusts is exempt if applied for charitable and religious purpose

To calculate whether applied or not,cash payment more than 10000 will not be taken into account


In easy language,

if these trusts make payment to any person in cash more than 10000,they have to pay tax on it

  1. Tax Practical
  2. Budget Amendments - Changes in 2020

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.