Same Limits. Stronger Enforcement.
By CA Surekha Ahuja
Cash continues to flow through temples, gurudwaras and charitable institutions—via donation boxes, pranami and langar contributions.
But under the current tax framework, cash is no longer informal—it is a monitored compliance area.
Compliance today depends on system design, not intent.
No Change in Limits
- ₹2,000 per cash donation
- ₹2,00,000 per person per day (receipts)
- ₹10,000 per person per day (payments)
There is no change in thresholds under the Income-tax Act, 2025.
However, enforcement has strengthened through:
- data analytics
- system-based validation
- AI-driven scrutiny
The law remains the same. Enforcement does not.
Three Non-Negotiable Triggers
- High-value cash donations must be avoided
- Aggregation per donor must be controlled
- Cash payments must remain minimal
These are not limits to track—they are limits to build your system around.
What Well-Managed Institutions Do
- Donation boxes handle only small offerings
- Larger contributions are routed through banking channels
- Cash payments are restricted and documented
They do not eliminate cash—they discipline it.
Minimum Compliance System
- Accept only small-value cash
- Shift higher donations to non-cash immediately
- Segregate funds (donation / pranami / langar / project)
- Record and deposit donation box collections properly
- Restrict cash payments to petty expenses only
Professional Recommendations
- Treat thresholds as hard operational caps
- Build controls at the point of transaction
- Avoid idle cash—deposit and utilise timely
- Maintain consistent documentation
- Conduct periodic internal reviews
Red Flags
- Large cash donations
- High or frequent cash payments
- Absence of donation box records
- Mixing of funds
- Unexplained cash balances
Conclusion
The shift is clear:
From recording transactions → to controlling transactions
Thresholds didn’t change. Surveillance did.
If your system allows a breach, your compliance is already at risk.
