• Notification Date: 22-01-2024
• Notification No: N/A

Is donation made to Shri Ram Janambhoomi Teerth Kshetra Taxable u/s 80G?

Understanding the provisions of Section 80G in the Income Tax Act can help individuals assess the eligibility for tax benefits associated with their charitable contributions. However, it's recommended to verify the certification status of the organization to ensure compliance with the criteria set by tax authorities.  

Here are some of the frequently asked questions on contributions made to Shri Ram Janambhoomi Teerth Kshetra, answered by CA Tarun Kumar Madaan in a newsletter recently. 

1. Who is eligible to claim a deduction for the amounts donated to the Shri Ram Trust? 

Section 80G of the Income Tax Act of 1961 allows all categories of taxpayers, including individuals, companies, firms, LLPs, etc., to save tax by donating money to eligible charitable institutions. Both resident and non-resident taxpayers can claim this deduction. By donating to eligible institutions and organisations, taxpayers can claim deductions ranging from 50% to 100% of the amount donated.  

The Central Government has notified Shri Ram Trust as a place of historic importance and a place of renowned public worship for the purpose of Section 80G(2)(b) w.e.f. FY 2020-21. Hence, the donations made to renovate or repair the temple are eligible for deduction. 

2. How much deduction can be claimed for the amount donated to the Shri Ram Trust? 

50% of the amount donated for renovation/repair of the Mandir to Shri Ram Trust is eligible for deduction under Section 80G. Donations for purposes other than the renovation or repair of the temple are not eligible for deduction. Further, this 50% deduction under Section 80G shall be subject to the qualifying limit. 

Payments to certain institutions are eligible for 100% or 50% without any qualifying limit. However, sometimes, you must determine the maximum qualifying limit eligible for deduction. 

If the total amount donated to Shri Ram Trust exceeds 10% of your adjusted gross total income (GTI), any excess amount beyond the 10% limit will not be eligible for deduction. It is important to note that only taxpayers who opt for the old tax regime while filing ITR can claim this deduction. Taxpayers who have chosen to file their ITR under the new tax regime are not entitled to this benefit. Therefore, if you have opted for the new tax regime, you cannot claim any Section 80G deduction while filing your ITR. The donor can claim a deduction for donations made through cash or cheque. However, cash donations exceeding Rs. 2,000 are not eligible for deduction. Also, it is important to note that donations made in kind are not eligible for deduction under this provision. 

3. Is there a deadline for donating to the Shri Ram Trust and claiming a deduction? 

Shri Ram Trust is notified under 80G(2)(b) from the F.Y. 2020-2021. Hence, donations made from the FY 2020-21 onwards are eligible for a deduction. January 22, 2024, is a ceremonial date for the Pran Pratishtha of Ram Lalla at the temple in Ayodhya. However, this date is not relevant for the deduction under Section 80G. Any donations made during the year can be claimed as a deduction in the income tax return to be filed for that year. Therefore, even if you donate before or after January 22, you can claim the deduction in your income tax return for that year, subject to the fulfilment of other conditions.  

4. How will I obtain the donation receipt for the amount contributed to the Shri Ram Trust? 

To claim the deduction under Section 80G, it is crucial to have the donation receipt. The official website of Shri Ram Janmabhoomi Teerth Kshetra offers various options and modes for contributing the amount. A person can log in using Mobile OTP and provide information such as name, purpose of donation, donor PAN Number, donation amount, address, mobile number, email ID, etc. The donation receipt is generated instantly and can be downloaded by the donor. The donor will also receive the donation receipt via email. This receipt will serve as sufficient proof to claim the deduction in the Income Tax return. 

5. Points to be taken care of for claiming deduction:  

The following considerations should be taken care of while claiming the deduction under Section 80G for the amounts donated to Shri Ram Trust: 

a. Donors should collect the donation receipt  

b. Donations should not be in kind  

c. Donations exceeding Rs. 2,000 should not be in cash  

d. Donations should be specifically given for the renovation/repair of the temple 

e. Donors should not be opting for the new tax regime  

f. Deduction can be claimed up to 50% of the amount donated subject to the qualifying limit 

g. Deduction can be claimed in the income tax return by filling in the information in 'Schedule 80G' in ITR.