• Notification Date: 29-01-2024
• Notification No: N/A

Income Tax Department clarifies Donations for Ram Mandir eligible for Income Tax Deduction

The Income Tax department has clarified that donations made to the Shri Ram Janmabhoomi Teerth Kshetra Trust in respect of the repair, rebuild, or renovation of the Ram Mandir in Ayodhya are eligible for deduction under Section 80G (2) (b) of the Income-tax Act, 1961. The Central Government has notified that 50 percent of the donation for the purpose of temple repair or renovation qualifies for this deduction. It is also important to note that cash donations exceeding Rs 2,000 are not eligible for deduction. 

Section 80G of the Indian Income Tax Act allows a tax deduction for contributions to certain relief funds and charitable institutions. All taxpayers, whether resident or non-resident, who have donated money to prescribed funds, institutions, or associations are eligible to claim a deduction from gross total income before levy of tax, under Section 80G of the Income Tax Act. 
 
The Central Board of Direct Taxes ( CBDT ) has explicitly stated that donations to the Shri Ram Janmabhoomi Teerth Kshetra are eligible for this tax benefit. The recent notification by the Central Government notes “SHRI RAM JANMABHOOMI TEERTH KSHETRA” ( PAN: AAZTS6197B ) as a place of historic importance and a renowned place of public worship, making it eligible for deductions under Section 80G(2)(b) from the financial year 2020-2021.