Ram Mandir Ayodhya Donation: Which Tax Regime To Opt For Tax Deductions?

The much-anticipated Ram Temple Pran Pratishtha in Ayodhya is scheduled to fall on Monday, January 22, therefore the day will live on forever in history. Through the Shri Ram Janmabhoomi Teerth Kshetra Trust, individuals from all around the world can donate money and receive tax deductions under Section 80G of the Income Tax Act of 1961.

Section 80G (2) (b) of the Income-tax Act, 1961 allows deductions for contributions made for the purpose of renovating or repairing the Mandir to Shri Ram Janmabhoomi Teerth Kshetra, subject to further conditions. However, there are particular conditions in order to claim deductions for donations made to the Ayodhya Ram Temple.

Tax deduction on donations to Ayodhya Ram Mandir Trust according to Avinash Polepally, Senior Director, ClearTax

Eligibility for Claiming Deductions for Shri Ram Trust Donations

The Income Tax Act of 1961, under Section 80G, offers tax deductions for donations to eligible charitable institutions. This benefit extends to all taxpayer categories, including individuals, companies, firms, and LLPs, regardless of residency status. Donations attract deductions ranging from 50% to 100%, depending on the institution and purpose.

Ram Mandir 80G Deduction Details

The Central Government officially recognised Shri Ram Trust as a historically significant and renowned public place of worship for Section 80G(2)(b) purposes starting in the 2020-21 financial year. Therefore, donations specifically aimed at temple renovation or repair qualify for a 50% deduction under this section. However, note that deductions exceeding 10% of your adjusted gross total income (ATI) limit will not allowed. Also, donations for any other purpose other than temple repair and renovation will not be allowed.

Additional Points for claiming tax exemption on donation to ram mandir ayodhya:

• Only taxpayers choosing the cash donations exceeding Rs. 2,000 and donations in kind are ineligible for the deduction.
• Donations made through approved online platforms or cheques are acceptable.
• You can claim the deduction for any donations made during the financial year, regardless of the Pran Pratishtha (Ram Mandir Inaugration) date.
• Download and retain the donation receipt as proof for claiming the deduction in your ITR.

Claiming Process

• Secure a valid Ram Mandir donation receipt from Shri Ram Trust.
• Ensure the donation falls within the eligible category (renovation/repair).
• Choose the old tax regime while filing your ITR.
• Provide details of the donation in Schedule 80G of your ITR form.

How to Donate to Ram Mandir?

There are several ways to contribute to the construction of Ram Mandir through the Shri Ram Janmabhoomi Teerth Kshetra Trust. Here's a guide to make your donation process smooth and secure:

• Visit the official website: Head over to the official website of the Shri Ram Janmabhoomi Teerth Kshetra Trust: https://srjbtkshetra.org/
• Click "Donate": Look for the "Donate" tab on the website's main page and click on it.
• Log in/Register: You can either log in with your mobile number and OTP or register using your details.
• Choose a bank account: Select one of the three authorized bank accounts for the Trust: SBI, PNB, or BoB. However, for Non-Indian passport holders, the bank account details are mentioned on the official website here.
• Fill in your information: Provide details like your name, purpose of donation, PAN number, donation amount, address, mobile number, and email ID.
• Make the payment: Choose your preferred payment method, which can be through a payment gateway, UPI, NEFT, IMPS, demand draft, or cheque.
• Download the receipt: Upon successful payment, you'll receive a donation receipt that you can download and keep for your records.

Important Points while making donations to Ram Mandir:

• Ensure you only donate through the official website or address mentioned above to avoid fraudulent activities.
• Donations made through cash exceeding Rs. 2,000 are not eligible for tax deductions.
• You can claim 50% deduction on your taxable income for donations made for renovation/repair of the temple under Section 80G of the Income Tax Act, provided you choose the old tax regime while filing your ITR.
• Keep the donation receipt as proof for claiming tax deductions.

Which Tax Regime To Opt For Claiming Deductions On Donations Made For Shri Ram Janmabhoomi Teerth Kshetra Trust?

According to Mr. Sujit Bangar, Founder, Taxbuddy.com, donations to Shri Ram Janmabhoomi Teerth Kshetra Trust can save income tax too!

If one donates for the renovation/repair of Ram Mandir Ayodhya, 50% of the donation amount can be claimed as a deduction while filing the income tax return.

If you donate, for example, Rs 50,000, the eligible deduction can be Rs 25,000. If you donate in cash, this deduction cannot be more than Rs 2000.

Further, if the donation amount exceeds 10% of the eligible Gross Total Income, this excess donation cannot be claimed as a deduction. Lastly, you need to choose the old tax regime to claim this deduction. In the new tax regime, this deduction won't be available.

Eligibility Required

According to Pramd Kathuria, Founder and CEO of Easiloan, your donations made towards the construction of the Ayodhya Ram Mandir through the Shri Ram Janmabhoomi Teerth Kshetra Trust can be subject to tax deductions under Section 80G of the Income Tax Act, 1961, but with some conditions:

Donating body: Donations must be made to the "Shri Ram Janmabhoomi Teerth Kshetra Trust" itself. Donations to other individuals or organizations associated with the temple might not be eligible.

Purpose of donation: Only donations specifically designated for the "renovation/repair of the Mandir" are eligible. General donations or contributions for other purposes may not qualify.

Mode of payment: Cash donations exceeding Rs. 2,000 are not allowed for deduction. Donations through online channels or other verifiable electronic means are preferred.

How To Avail Deductions?

As per Pramd Kathuria, the deduction percentage should be 50% of the donated amount i.e. eligible for deduction, subject to the overall limit under Section 80G.

Overall limit: This deduction is subject to the overall limit of 10% of your Gross Total Income (GTI) in a financial year. This means you can claim a maximum deduction of 10% of your GTI for all eligible donations under Section 80G, including your Ram Mandir contribution.

Rules To Claim The Deduction

According to Mr. Pratapsingh Nathani, chairman and MD at Beacon Trusteeship, here are the rules individuals should follow before applying for tax deductions made towards donations.

• Donations made towards noble causes and historical ventures such as the construction of the Ayodhya Ram Mandir, a grand monument in honor of Lord Ram, come with tax incentives under Indian law.
• Under Section 80G of the Income Tax Act, your financial contributions towards the building of the Ayodhya Ram Mandir can be deducted from your taxable income. This clause permits deductions on donations made in either cash or cheque to certain specified funds and charitable institutions. However, be aware that donations in kind - like property or jewelry - do not qualify for these deductions.
• The maximum amount that can be deducted is capped at 10% of your adjusted total income for the financial year in which you made the donation. Moreover, you need to obtain a stamped receipt from the Trust, carrying details such as the Trust's name, address, and PAN number, along with your name and the donated amount, to claim this deduction.
• When making contributions in honor of Lord Ram and devotion towards the cause, it's beneficial to know that your monetary donation can also help lower your tax liability.
• In making a donation towards the construction of the Ayodhya Ram Mandir, you are not only participating in a historical spiritual venture but also can avail yourself of tangible financial benefits. It harmoniously blends religious dedication with fiscal prudence, making it a truly rewarding exercise in the name of Lord Ram.

Disclaimer

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