Donations to Ayodhya Ram Mandir can help you save taxes: Here is how

You can claim a 50% deduction on your donation under Section 80G of the Income Tax Act

Donations for Ayodhya Ram Mandir can help you save on taxes under Section 80G of the Income Tax Act.

 

Contributions made to the Shri Ram Janmbhoomi Teerth Kshetra Trust qualify for deductions of up to 50 per cent. Online or cash donations of up to Rs 2,000 are eligible for a tax deduction under Section 80G under the old tax regime. Individuals can claim a deduction of up to 50 per cent of the donated amount. However, it is important to note that not everyone may be able to avail the full 50 per cent deduction.

  Kunal Savani, partner at Cyril Amarchand Mangaldas, explained why tax deduction is capped at a maximum of 50 per cent of the donation made to Ayodhya Ram Mandir.

 

 

Section 80G of the Income Tax Act, 1961 offers tax deductions for donations made to eligible charitable organizations; it is available to a wide range of taxpayers, including individuals, companies, and Limited Liability Partnership (LLP). Resident and non-resident Indians (NRIs) can benefit from this provision, which provides a deduction of either 50 per cent or 100 per cent of the donation amount, depending on the recipient institution.

 

“Notably, the Shri Ram Janmbhoomi Temple, recognised by the Indian government for its prominent significance, qualifies for this deduction up to 50 per cent, making donations towards the repair and renovation of the temple eligible for tax benefits under Section 80G, as notified by the Government,” said Savani.

 

A deduction under Section 80G(2)(b) of the Income Tax Act, 1961 for donation to Ram Mandir is applicable only on contributions that are “made specifically” towards the renovation and repair of the temple. Contributions to other religious activities are not eligible for the same. Hence, the deduction is capped at 50 per cent of the donated amount. For instance, a donation of Rs 10,000  would yield a Rs 5,000 tax relief.  Calculate Income Tax: Income Tax Calculator Tool

 

When a taxpayer claims a tax deduction under Section 80G, the trust must report the donation to the tax department via Form 10BD and provide Form 10BE to the donor. However, in the case of donations to the Ayodhya Ram Mandir, issuing Form 10BE is not mandatory. Despite this, taxpayers can still avail themselves of the Section 80G tax deduction for such contributions without the need for this form.

 

Pallav Pradyumn Narang, partner at CNK, explained if a person’s Income Tax Return (ITR) will come under scrutiny for claiming a Section 80G tax deduction with an approval reference number (ARN)

 

ARN is issued when a trust is approved under 80G. While legitimate donations qualify for deductions, tax authorities closely monitor claims to prevent fraudulent deductions.

 

Your Income Tax Return (ITR) could be flagged for scrutiny if:

 

The donation receipt ARN does not match with the details available with the tax authorities,

 

The donation amount is disproportionately high compared to the declared income,

 

Lack of proper documentation, such as receipts or bank transaction proofs.

 

However, to ensure a smooth tax claim, keep the following documents:

 

A valid donation receipt having trust's ARN number correctly mentioned.

 

Bank transaction records and related documents verify the donation.

 

Claim deductions that are reasonable compared to your income. 

 

Is there tax-saving options for donations to other temples?

 

Many temples and religious trusts in India qualify for tax benefits under Section 80G, but the deduction percentage varies based on the nature of the trust and government classification as below.

Temple / Trust	Tax deduction under 80G
Shri Tirupati Balaji Temple (Tirumala Tirupati Devasthanams)	50%
Shri Kashi Vishwanath Temple Trust	50%
Somnath Temple Trust	50%
Siddhivinayak Temple Trust	50%
Swaminarayan Trusts	50%
National Foundation for Communal Harmony	100%