How to claim tax deductions on Ram Temple donations

Know the tax breaks on offer for Ram Temple donations

The Income Tax Act of 1961, under Section 80G, offers tax deductions for donations to eligible charitable institutions. This benefit is for all taxpayer categories – individuals, companies, firms, and LLPs, regardless of residency status.

Donations attract deductions ranging from 50 percent to 100 percent, depending on the institution and purpose.

Also read: Ayodhya Ram Mandir: How your money can take part in the inauguration

Ram temple donation eligible for 80G deduction

The Central government officially recognised the Shri Ram Janmabhoomi Teerth Kshetra Trust as a historically significant and renowned public place of worship for Section 80G(2)(b) purposes, starting in  financial year 2020-21. Donations specifically meant for temple renovation or repair qualify for a 50 percent deduction under this section.

However, note that deductions exceeding 10 percent of your adjusted gross total income (ATI) limit will not be allowed. Also, donations for any purpose other than temple repair and renovation will not be allowed.

Donations over Rs 2,000 in cash not tax exempt

This apart, tax-payers need to understand certain conditions relevant for claiming tax exemption on donations to Ram Mandir in Ayodhya.

For one, 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 deductions for any donation made during the financial year, regardless of the Pran Pratishtha (January 22, 2024) date.

On your part, ensure that you download and retain the donation receipt as proof to claim the deduction.

Also read: ITR filing: Using AI and tech, Income-Tax department sends notices to tax evaders for fake donations

Know how to claim the tax break

Ensure that your donation falls within the eligible category (renovation/repair) and secure a valid Ram Mandir donation receipt from the Shri Ram Trust. Choose the old tax regime while filing your income tax returns. You will have to provide the details of the donation in Schedule 80G of your tax returns form.

Preserve receipts

There are several ways to contribute to the construction of the Ram Mandir.

For one, you can donate through the official website of the Shri Ram Janmabhoomi Teerth Kshetra Trust. You will have to provide details such as your name, address, purpose of donation, PAN and donation amount.

Ensure that you download a copy of the receipt and maintain a record. This will ensure hassle-free deduction claims when filing income tax returns. While you do not need to upload the copy or dispatch it along with your returns, you must preserve the receipt for the donation details.

Points to bear in mind

To start with, ensure that you donate only through the official website to avoid fraudulent transactions. Cash donations exceeding Rs 2,000 are not eligible for tax deductions.

You can claim a 50 percent deduction from your taxable income on donations made for renovation/repair of the temple under Section 80G, provided you choose the old tax regime while filing your returns.

Make sure you preserve the donation receipt as proof for claiming tax deductions.