The donations made by individuals to Shri Ram Janmabhoomi Teerth Kshetra Trust, which will be used for renovation or repair work of the Ayodhya Ram Mandir, are eligible for tax deduction under Section 80G of the Income Tax Act, 1961, provided that person chooses the old tax regime, a media report said.
According to The Economic Times, the Central Board of Direct Taxes (CBDT) notified the Ayodhya Ram Mandir as a place of public worship. As per a CBDT circular dated May 8, 2020, “The Central government hereby notifies Shri Ram Janmabhoomi Teerth Kshetra (PAN: AAZTS619B) to be a place of historic importance and a place of public worship of renown for the purposes section from the year F.Y,2020-2021, relevant to the assessment year 2021-2022.”
The report mentions that until CBDT comes up with anything specific that donation to the Trust is not eligible for deduction under Section 80G, till that time, the donations will have the facility.
It further stated that 50% of the amount donated to the Trust can be claimed by the individual, but the qualifying limit is 10% of the adjusted gross total income.
As per the report, donations in kind of any monetary value are not eligible for deduction while cash donations up to Rs 2,000 are eligible for an 80G deduction.
“Donation in cash can be made of any amount like Rs 1 lakh or Rs 11, too, and the Ayodhya Ram Mandir Trust will issue donation receipts also. However, the said individual cannot claim more than Rs 2,000 as an 80G deduction while filing ITR since he donated in cash,” the report said quoting a tax expert.
Edited by Suman Singh
