The Income Tax department has clarified that donations made for the repair, rebuild, or renovation of the Ram Mandir in Ayodhya, under the Shri Ram Janmabhoomi Teerth Kshetra Trust, are eligible for deduction under Section 80G (2) (b) of the Income-tax Act, 1961.
The government has notified that 50 per cent of the donation for the purpose of temple repair or renovation qualifies for this deduction. However, it's important to note that cash donations exceeding Rs 2,000 are not eligible for deduction.
The Central Board of Direct Taxes (CBDT) has said that donations to the Shri Ram Janmabhoomi Teerth Kshetra are eligible for this tax benefit.
Section 80G of the Income Tax Act, 1961, deals with deductions for donations to certain funds, charitable institutions, etc. The recent notification by the Central Government specifies "Shri Ram Janmabhoomi Teerth Kshetra" 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.
Who is eligible for the tax deduction?
The act allows various categories of taxpayers, including individuals, companies, firms, LLPs, etc, to receive tax benefits by making donations to eligible charitable institutions. This deduction is applicable to both resident and non-resident taxpayers. By contributing to qualified institutions and organisations, taxpayers can claim deductions ranging from 50 per cent to 100 percent of the donated amount.
Donations to the Shri Ram Janmabhoomi Teerth Kshetra can be made through cheque, UPI, and Internet Banking.
Donation deadline for claiming deductions
Shri Ram Trust has been officially notified under Section 80G(2)(b) starting from the financial year 2020-2021. Donations made from the financial year 2020-21 onwards qualify for a deduction under this section. While January 22, 2024, holds significance as the ceremonial date for the Pran Pratishtha of Ram Lalla at the Ayodhya temple, it is important to note that this date is not directly relevant for the deduction under Section 80G.
Any donations made throughout the year, whether before or after January 22, can be claimed as a deduction in the income tax return for that particular year, provided all other conditions for eligibility are met. Therefore, individuals can avail themselves of the deduction benefit for donations made within the specified financial year when filing their income tax returns.
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