Guide to Claiming Tax Relief on Ram Temple Donations

Guide to Claiming Tax Relief on Ram Temple Donations

25 January, 2024

The inauguration of the Ayodhya Ram Temple on January 22 has become one of the most significant events in recent times. The opening of the temple for the general public is poised to influence several sectors of the Indian economy, including tourism, infrastructure, hospitality, and others. The event may also lead to improvements in infrastructure with the development of new airports, hi-tech railway stations, township enhancements, upgraded road connectivity, etc.

As an individual, you can donate to the Ram Temple fund and become a part of this historic milestone. And even claim income tax deductions and reduce your taxable income by donating to the Ram Temple.

This article serves as a complete guide on how to make Ram Temple donations and claim tax benefits against them.

Tax deductions under section 80G

Section 80G of the Income Tax Act of 1961 allows various categories of taxpayers, including individuals, companies, Limited Liability Partnerships (LLPs), and more, to avail of tax deductions on donations made to eligible charitable institutions. This deduction is available for resident Indians and Non-Resident Indians (NRIs). The tax deduction threshold may range between 50% and 100% of the donated amount.

The Indian Government has already recognised Shri Ram Janmbhoomi as a place of historical significance and public worship. It means that donations made towards the newly consecrated temple will be eligible for tax deductions under section 80G.

Below are the conditions that define the tax deduction eligibility for Ram Mandir donations:

  • You can claim the section 80G deduction only if you have donated for the repair and renovation of the Ram Temple. Donations made for other activities, such as religious events or welfare programs, are not eligible for tax deductions.

  • You can claim 50% of the donated amount as a tax deduction. It means that if you have made a Ram Mandir donation of ₹20,000, you can claim a donation tax relief of ₹10,000.

  • The donation deduction amount cannot exceed 10% of your Adjusted Gross Total Income (AGTI) for the financial year in which you have donated. For example, if your AGTI for a financial year is ₹10 lakhs, you can make a maximum tax-deductible donation of ₹1 lakh in that year.

  • You must donate through a cheque, Demand Draft (DD), or online transfer facility. Cash donations exceeding ₹2,000 will not be eligible for income tax deductions.

  • Taxpayers filing their Income Tax returns (ITRs) as per the old tax regime can avail of an 80G tax deduction. So, if you have opted for the new tax regime, you won’t be able to claim tax deductions on Ram Temple donations.

How to claim tax deductions for Ram Temple donations?

When you donate towards the Ram Temple repair or renovation, make sure you download the receipt to claim an income tax deduction. Your receipt must contain the following information:

  • Name of the donor

  • Donation amount

  • Date of donation

  • Registration number of the Ram Janmabhoomi Trust

  • Purpose of donation

Now, you can claim an income tax deduction under section 80G while filing your ITR for the financial year. Remember to attach the donation receipts as proof for claiming the deduction. If eligible, you will get a tax refund after filing your ITR.

How to make Ram Temple donations?

You can donate towards the Ram Mandir online and offline. However, if your donation amount exceeds ₹2,000, it’s better to donate online to utilise the tax deduction limit. To make online donations, you can visit the official website of Shri Ram Janmabhoomi Teerth Kshetra Trust < > and log in using a One-Time Password (OTP).

You can then enter details, such as your name, address, mobile number, PAN number, donation amount, purpose of donation, etc., and donate online via NetBanking, Debit/Credit Card, or UPI. You can also send a cheque to the registered address or initiate a National Electronic Funds Transfer (NEFT). After donating, do not forget to download your donation receipt.

To conclude

Contributing towards the Ram Mandir not only allows you to be a part of the historic and cultural milestone but also provides you with an opportunity to reduce your income tax outgo. As you consider making donations, be mindful of the tax benefits available under Section 80G and the conditions for availing of these benefits. With HDFC Bank, you can make donations to your choice of deities in just a few clicks and avail of tax benefits to reduce your tax outgo. Click to know more.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.

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