The Shri Ram Janmabhoomi Teerth Kshetra Trust, the organization in charge of the temple's construction, places the Ayodhya Ram Mandir under Section 80G. Donations to this trust are tax deductible because it is duly registered under Section 80G.
By making charitable contributions to qualified organizations, taxpayers of all types—individuals, corporations, partnerships, LLPs, etc.—can save taxes under Section 80G of the Income Tax Act of 1961. This deduction is available to taxpayers who are residents or non-residents. Contributions made by taxpayers to qualified institutions and organizations may be deducted at tax rates of between 50 and 100 percent.
With effect from FY 2020–21, the Central Government has designated Shri Ram Trust as a site of famous public worship and a place of historic significance under Section 80G(2)(b). As a result, donations given towards temple renovation or maintenance are deductible.
Can donations made to the Ram Mandir be deducted?
Only contributions made in support of the Ram Mandir's restoration and maintenance are eligible for deduction. Section 80G does not apply to donations made in support of other Trust-governed activities, such as religious gatherings or social welfare programmes.
Contributions made to the Shri Ram Janmabhoomi Teerth Kshetra Trust will enable donors to take part in the building of the magnificent Sri Ram temple in Ayodhya. Section 80G of the Income Tax Act allows for the deduction of donations made to the trust. Donors may deduct 50% of their donation up to a maximum of 10% of their adjusted gross total income, according to Partner Pallav Pradyumn Narang. In a blog post published by Taxmann, CA Tarun Kumar Madaan stated that "any excess amount beyond the 10% limit will not be eligible for the deduction if the total amount donated to Shri Ram Trust exceeds 10% of your adjusted gross total income (GTI)."
For example, if an individual with a taxable income of Rs. 10,000,000 donates Rs. 10,000 to the Ram Mandir, his taxable income is reduced by Rs. 5,000 (i.e., 50% of Rs. 10,000). As a result, his net taxable income would now only be Rs 9,95,000, according to Ved Jain & Associates Partner Ankit Jain.
Deductible percentage: Under Section 80G, half of the donation amount is deductible.
Maximum: In the fiscal year that you donate, the deduction cannot be greater than 10% of your adjusted gross total income (AGTI).
Payment options: Contributions must be made online, via cheque or with a draft.
Donations of cash beyond Rs 2,000 are not tax deductible
This deduction is only available to taxpayers who choose to file their ITR under the previous tax regime. This benefit is not available to taxpayers who have opted to file their ITR under the new tax law.
How does one go about getting the deduction?
In order to deduct the amount from your income taxes, you must obtain a legitimate receipt from the Shri Ram Janmabhoomi Teerth Kshetra Trust that includes the following information, according to Rajput.
1. Name and address of the person
2. Donation amount
3. Donation date
4. Section 80G registration number of the Trust
5. The donation's specific goal (state "repair and renovation" of Ram Mandir)
6. When submitting a deduction request, don't forget to include this receipt with your income tax return form.
7. By completing the information on "Schedule 80G" in the ITR, the deduction can be claimed in the income tax return.
The Shri Ram Janmabhoomi Teerth Kshetra official website provides a number of ways to make the donation. A user can use a mobile one-time password (OTP) to log in and provide details about themselves, including name, contribution purpose, donor PAN number, donation amount, address, phone number, email address, etc. The donor can get the instantaneously generated donation receipt. The gift receipt will be emailed to the donor as well. According to Madaan, "This receipt will be adequate evidence to claim the deduction in the Income Tax return."
Additional Considerations
Under Section 80G, donations made in kind (i.e., commodities or services) are not deductible.
Donations made in foreign currencies may be subject to differing deduction requirements and need special processes.
Is a Form 10BE certificate required for the donor to be able to deduct the amount they have donated to the Shri Ram Trust?
According to Madaan, a certificate in Form 10BE will be needed as proof of the Section 80G deduction to be claimed when submitting an ITR starting in FY 2021–2022. Only if the fund or institution includes the donor's information in the Form 10BD statement that is electronically filed through the income tax department's e-filing site will the deduction be permitted.
However, it's crucial to remember that only NGOs that fall under the approved category, as defined by Section 80G(2)(a)(iv), are subject to the reporting requirement to file a declaration of gift in Form 10BD and issue Form 10BE. On the other hand, under clause (b) of Section 80G(2), the Shri Ram Trust is a notified trust as a famous place of public worship and a site of historical significance. Therefore, it is not required to give a certificate in Form 10BE or file a statement of donations in Form 10BD. Thus, when donors claim the Section 80G deduction in their ITR, the donation receipt will serve as adequate evidence of payment, according to Madaan.
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