The “Pran Pratishtha” ceremony on the Ram Mandir in Ayodhya, which befell on January 22, 2024, holds nice significance because it symbolizes the decision of a centuries-old dispute. It introduced pleasure to hundreds of thousands of individuals worldwide. People who’ve contributed or are desiring to contribute to the Shri Ram Janmabhoomi Teerth Kshetra Belief, the physique entrusted with the temple’s development, are eligible to assert a deduction on their revenue tax u/s 80G of the Revenue Tax Act.
Recognition u/s 80G
The Central Authorities vide its Notification No. 24/2020/F. No. 176/8/2017/ITA-I dated eighth Might, 2020 formally acknowledged “SHRI RAM JANMABHOOMI TEERTH KSHETRA” to be a spot of historic significance and a spot of public worship of renown for the needs of Part 80G(2)(b) with impact from the FY 2020-21.
Who’s eligible to assert a deduction for donations to the Shri Ram Belief?
Part 80G of the Revenue Tax Act of 1961 permits all sorts of taxpayers, akin to people, firms, corporations, LLPs, and others, to avail tax advantages by contributing funds to certified charitable establishments. This deduction is relevant to each resident and non-resident taxpayers.
How a lot deduction may be claimed?
Beneath Part 80G, funds to specified establishments appeal to a 100% or 50% deduction with none qualifying restrict. However typically, the deduction is restricted to a most qualifying restrict (which is 10% of your adjusted GTI). This share of deduction with or with out restriction depends upon the establishment and function.
Because the Central Authorities has notified the Shri Ram Belief for the needs of Part 80G(2)(b), the sums donated to the Belief for the renovation/restore of the temple are eligible for a 50% deduction. For instance, in case you have donated ₹50,000, you’re going to get a tax reduction of ₹ 25,000.
Additional, this 50% deduction shall be topic to the qualifying restrict. If the whole quantity donated to the Shri Ram Belief exceeds 10% of your adjusted gross whole revenue (GTI), any extra quantity past the ten% restrict is not going to be eligible for deduction. Suppose your adjusted GTI for a monetary 12 months is ₹10 lakhs, you may make a most tax-deductible donation of ₹1 lakh.
Is there a deadline for donating to the Shri Ram Belief and claiming a deduction?
The Shri Ram Belief has been notified below Part 80G(2)(b) from the monetary 12 months 2020-21 onwards. Thus, if you happen to make a donation within the monetary 12 months 2020-21 or thereafter, you may get a deduction below Part 80G(2)(b) of the Revenue Tax Act, 1961. The ceremonial date for the Pran Pratishtha of Ram Lalla on the Ayodhya temple on January 22, 2024, is a particular occasion, but it surely doesn’t have an effect on the tax deduction. Any donation made throughout a 12 months may be claimed as a deduction whereas submitting the ITR for that 12 months. So, whether or not you donate earlier than or after January 22, you’ll be able to declare a deduction for the respective 12 months, topic to the success of different situations.
Factors to contemplate
Listed below are some factors to be taken care of for claiming the deduction in respect of quantities donated to the Shri Ram Belief:
- Donors ought to acquire the receipts of donations made. Obtain and retain the receipt as proof for claiming the deduction.
- Donations shouldn’t be in sort.
- Donations in extra of Rs 2,000 shouldn’t be in money.
- Donations must be particularly directed in the direction of the restore/renovation of the temple. Quantities contributed for every other function are usually not eligible for deduction.
- Donors shouldn’t be choosing the brand new tax regime. When you have opted for the brand new tax regime, you aren’t entitled to assert a deduction u/s 80G.
- For claiming the deduction, donors must fill out the data in “Schedule 80G” within the Revenue Tax Return.
Course of to assert deduction
1. Safe a sound receipt of the Ram Mandir donation from the Shri Ram Belief. The receipt should comprise the identify of the donor, donation quantity, date, registration no. of the Shri Ram Belief, and many others.
2. Be certain that the donation falls throughout the eligible class (i.e., for renovation/restore).
3. Choose the previous tax regime whereas submitting your Revenue Tax Return.
4. Furnish particulars of the donation in Schedule 80G of your ITR type.
Notification Hyperlink – https://incometaxindia.gov.in/communications/notification/notification_24_2020.pdf
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