Tax Deduction on Donations to Ayodhya Ram Mandir Trust

Eligibility for Claiming Deductions for Shri Ram Mandir Trust

Here are the eligibility conditions for claiming deductions for Shri Ram Mandir Trust -

• Eligible Donations: You can claim a Section 80G deduction only if your donation is specifically for the repair and renovation of the Ram Temple. Contributions for religious events or welfare programs are not eligible.
• Deduction Percentage: You can claim 50% of your donated amount as a tax deduction. For example, if you donate ₹20,000, you can avail a deduction of ₹10,000.
• Maximum Deduction Limit: The deduction cannot exceed 10% of your Adjusted Gross Total Income (AGTI) for the financial year. If your AGTI is ₹10 lakh, the maximum tax-deductible donation is ₹1 lakh.
• Payment Mode: Donations must be made through cheque, Demand Draft (DD), or online transfer. Cash donations above ₹2,000 are not eligible for tax deductions.
• Tax Regime Applicability: Only taxpayers under the old tax regime can claim the 80G deduction. If you have opted for the new tax regime, you cannot avail of this benefit.

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What is the Deduction Limit for Donation to Ram Mandir Trust?

The Central Government officially recognized Shri Ram Trust as a historically significant place of worship under section 86G(2)(b). Donations made for temple repair and renovation qualify for a 50% exemption. However, deductions exceeding 10% of your adjusted gross total income (ATI) limit will not be allowed. Also, donations made for any purpose other than the temple’s repair and renovation are not allowed. Here are some points to keep in mind -

• Cash donations exceeding Rs.2000 and donations in kind are not eligible for deduction.
• Donations made through cheques or approved online platforms are eligible for deduction.
• The deduction can be claimed for any donations made during the FY, regardless of the Pran Pratishtha date.
• Make sure you download and retain the donation receipt as proof for claiming the deduction while filing your ITR.

Note: The charitable institutions receiving the donation are required to submit Form 10BE to the donor as proof of donation. However, this requirement is not applicable to the donation made to the Ram Mandir Ayodhya Trust.

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How to Claim 80G Deduction for Donations to Ram Mandir Trust?

Here’s how you can claim the section 80G deduction for the donations made to the Ram Mandir Trust -

• Secure a valid Ram Mandir donation receipt from the Shri Ram Mandir Trust. The donation receipt must consist of the donor’s name, donation amount, donation date, registration number of the Mandir trust and the purpose of donation.
• Make sure the donation falls within the eligible category (renovation/repair).
• Choose the old tax regime while filing ITR. The deduction for donations is not available under the new tax regime.
• Provide the details of the donation in schedule 80G of the ITR form.

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Why is Maximum 50% Deduction Allowed for Donations Made to Ayodhya Ram Mandir?

There are three reasons why the maximum deduction allowed for donation to Ram Mandir Trust is 50% -

• Section 80G: The Ayodhya Ram Mandir Trust is notified under sub-clause (b) of section 80G(2), which allows deductions for donations made for the renovation or repair of the temple. However, contributions made towards other activities, such as religious events and social welfare initiatives, do not qualify for this deduction.
• Gross Total Income: The 50% deduction mentioned above is subject to a qualifying limit of 10% of your Adjusted Gross Total Income (GTI). Any donation amount above this limit will not be eligible for deduction. The adjusted GTI is calculated by subtracting all deductions under sections 80C to 80U and incomes subject to short-term and long-term capital gains from the GTI.
• Mode of Contribution (online/offline): Donations made in cash exceeding Rs.2000 and donations in kind are not eligible for deduction.

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No requirement of Form 10BE for donation to Ayodhya Ram Mandir

When a taxpayer claims a tax deduction under Section 80G, the trust must report the donation to the tax department using Form 10BD and issue Form 10BE to the donor. However, donations to the Ayodhya Ram Mandir do not require Form 10BE. Taxpayers can still claim a Section 80G deduction for these donations, even without this form.

Institutions or funds approved under Section 80G(2)(a)(iv) of the Income-tax Act, 1961, must submit donation details in Form 10BD and issue a corresponding certificate in Form 10BE, which includes the ARN. However, the ‘Sri Ram Janmabhoomi Teerth Kshetra’ is recognized under Section 80G(2)(b) by the Central Government. As a result, it is not required to issue a donation certificate in Form 10BE.

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Things to Consider Before Making Donations to Ram Mandir

Here are the things that you need to consider before making donations to Shri Ram Janmabhoomi Trust -

• Donate only through the official website or address mentioned above to avoid fraud.
• Cash donations exceeding ₹2,000 do not qualify for tax deductions.
• You can claim a 50% tax deduction on donations for the temple's renovation or repair under Section 80G of the Income Tax Act, but only if you opt for the old tax regime while filing your ITR.
• Keep the donation receipt as proof to claim the tax deduction.

Contributing or donating to the Ram Mandir Trust not only helps you become a part of a historic milestone but also provides an opportunity to maximize your tax savings. If you are not sure how to claim a deduction for the donation made to the Ayodhya Ram Mandir Trust, you can get in touch with our experts who provide end-to-end tax services tailored to your needs.

Whether you are looking to file your ITR, plan your taxes, or have a tax query, our experts have got you covered. Book an online CA now!

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