Whether Section 80G covers the Ayodhya Ram Mandir Donation?

Introduction

The construction of the Ayodhya Ram Mandir has been an important event in the history of India, one that has been awaited by millions of devotees across the country. The Supreme Court of India, in November 2019, gave its decision in favor of the construction of the temple. The government of India established the Shri Ram Janmabhoomi Teerth Kshetra Trust in February 2020 to oversee the renovation/ repair and management of the temple. The consecration ceremony, known as the Pran Pratishtha, for Lord Ram has taken place on January 22, 2024, in Ayodhya, Uttar Pradesh. Now the question arises: whether Section 80G covers the Ayodhya Ram Mandir Temple donation? Section 80G of Income Tax permits taxpayers to claim a deduction for particular charitable donations.

What is Section 80G?

Section 80G of the Income Tax Act, 1961 allows taxpayers to claim deductions on donations made to specified charitable institutions. These deductions can be claimed from the total taxable income, thereby reducing the tax liability of the donor. However, it is important to note that not all donations are eligible for these deductions. Organizations seeking to enjoy the benefits of Section 80G must meet certain criteria and obtain the necessary approval from the Income Tax Department.

What is Shri Ram Janmbhoomi Teerth Kshetra Trust?

The Ayodhya Ram Mandir holds immense significance in the hearts of millions of Hindus worldwide. It is believed to be Lord Ram Janamabhoomi, a revered deity in the Hindu religion. Ram Janmabhoomi Teerth Kshetra Trust was established by the government to assist donations for the renovation/repair of the Ayodhya Ram Mandir. The trust has been registered under Section 80G of the Income Tax Act, 1961, making donations made to it eligible for tax deductions. This trust serves as the designated body for receiving and managing donations towards the temple’s repair.

Who is eligible for a tax deduction for Ram Mandir Donation?

The eligibility to make donations to the Ram Mandir Trust is open to all individuals, resident Indians, and non-resident Indians (NRIs). Regardless of caste, creed, or geographical location, anyone willing to contribute to the construction of the Ram Temple can do so by donating to the Shri Ram Mandir Kshetra Trust.

What is the eligibility for Section 80G and deadline?  

According to a recent notification from the Central Government, “SHRI RAM JANMABHOOMI TEERTH KSHETRA” (PAN: AAZTS6197B) has been officially recognized as a site of historical significance and a well-known public worship location. Consequently, this recognition renders it eligible for deductions under Section 80G(2)(b) starting from the financial year 2020-2021.

How much deduction can be claimed for the amount donated to Ram Mandir Trust?

Individuals and corporations making donations to the Shri Ram Janmabhoomi Teerth Trust can claim deductions under Section 80G of the Income Tax Act. The deductions available depend on the type of taxpayer:

• Individuals: Individuals can deduct up to 50% of the donated amount from their taxable income.
• Corporations: Corporations can deduct up to 10% of their adjusted total income.

It is important to note that the deductions claimed under Section 80G are subject to certain overall limits. The total deduction, including all donations made, cannot exceed the taxable income or the maximum limit specified under Section 80G. Individuals and organizations need to be mindful of these limits while claiming deductions.

Note: Cash donations exceeding Rs. 2,000 are not eligible for deduction under Section 80G. Also, donations in the form of kind are not eligible for deduction. Foreign currency donations have a different process and conditions.

Important Points to Remember

While claiming a deduction under Section 80G for donations made to Shri Ram Trust, donors should keep in mind the following points:•

• Collect the donation receipt
• Do not donate in kind.
• Do not donate more than Rs. 2,000 in cash.
• Donate specifically for the renovation/repair of the temple.
• Do not opt for the new tax regime.
• The deduction can be claimed up to 50% of the amount donated, subject to the qualifying limit.
• The deduction can be claimed in the income tax return by filling in the information in ‘Schedule 80G’ in the Income Tax Return.

Summary

To summarize, Section 80G can cover donations made to the Ayodhya Ram Mandir through the Shri Ram Janmabhoomi Teerth Trust. This provision not only allows donors to contribute to the cultural actively and religious heritage of India but also provides them with tax benefits.