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.

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.












Comments

Post a Comment

Popular posts from this blog

You can file ITR first, pay income tax later: Here’s how to use this feature on e-filing portal

The income tax department has launched a new feature on the income tax   e-filing  website that allows an individual to pay income tax later. This means that an individual can continue to file ITR without paying the pending income taxes first. Once the ITR is filed, then the income tax amount can be paid, albeit with some conditions. Earlier the ITR could only be filed once the due taxes were paid. “Income tax department has given an option of pay later when we file income tax return (ITR) . Therefore, an individual can file an ITR without paying income tax dues first by using the pay later option,” said CA Abhinit Singh, Founder, Ready Accountant, a Kolkata-based educational institution. Read below to find out how to use the ‘Pay Later’ option on the Income Tax Department’s e-filing portal. Pay later facility is available for this tax payment According to Mihir Tanna, Associate Director (Direct Tax), S K Patodia & Associates, a Mumbai-based CA firm, “The ‘Pay...
Read more

How To Claim LTA Tax Exemption Under Old Tax Regime?

 Employees who get Leave Travel Allowance (LTA) are only excluded from paying taxes on their real out-of-pocket travel expenses, such as air, rail, or bus fares. Only two travels may be excluded from the LTA throughout a period of four calendar years. You can claim LTA benefits for the travel expenses for both you and your family. The amount of the LTA exemption relies on the LTA portion in your CTC. Let’s get comments from various industry experts on how to claim LTA tax exemption under the old tax regime as the current block year is 2022-2025. Mr. Sujit Bangar, Founder, Taxbuddy.com The Indian Income Tax System plays a vital role in the country’s economic growth and development. One of the key components of this system is Leave Travel Allowance (LTA), which provides tax benefits for individuals who undertake domestic travel. In this article, we will delve into the intricacies of LTA and how it impacts taxpayers in India. LTA is a component of an employee’s salary package that al...
Read more

Got tax notice to pay additional tax? Your TDS claim rejection could be the reason; know when it can happen

The tax department will flag your income tax return (ITR) and disallow tax deducted at source (TDS) credit if it detects any mismatch in TDS data reported by you in the ITR and by the TDS deductor. This is because when a TDS deductor deducts the tax, they need to file a TDS return, which the tax department reconciles with the data reported by you. For example, if you invested in FDs and the bank deducted Rs 10,000 as TDS, then the bank must report this transaction in their TDS return. If, for  any reason, the bank makes an error in reporting this data, then the income tax department will disallow your TDS claim and may even issue a tax notice for this. "It may be noted a taxpayer will not get a tax credit for tax deductions that are not reflected in the Form 26AS," said the income tax department. This implies that if you owe any taxes after submitting your ITR, you will need to settle the tax debt because you won't be able to offset TDS credit that doesn't show up in...
Read more