Introduction: Welcome, reader! Curious about claiming a tax deduction for your contributions to the Ram Mandir? In this discussion, we explore the details surrounding eligibility, deduction limits, deadlines, and essential considerations. Section 80G of the Income Tax Act opens avenues for taxpayers, including individuals and entities, to support charitable causes like the Shri Ram Trust. Let’s unravel the specifics and guide you through the process of claiming deductions for your contributions to the temple’s renovation and repair.
WHO IS ELIGIBLE?
To ascertain eligibility for claiming deductions on donations made to the Shri Ram Trust, consider the inclusive scope of Section 80G under the Income Tax Act. This provision extends its tax-saving benefits to a diverse range of entities, encompassing individuals, companies, firms, LLPs, and more. Whether you are a resident or a non-resident taxpayer, the opportunity to avail of this deduction remains open for all.
The Shri Ram Janmabhoomi Teerth Kshetra (PAN: AAZTS6197B) has been notified under sub-clause (b) of Section 80G(2). So, all the additional conditions usually associated with Section 80G(5) shall not apply to Shri Ram Trust, providing deductions to donors for supporting the renovation and repair of the temple.
DEDUCTION AMOUNT:
Now, turning to the specifics of the deduction, the amount eligible for claiming deductions on donations to the Shri Ram Trust is determined by the nature of the contribution. In the case of donations specifically allocated for the renovation or repair of the Mandir, Section 80G allows a deduction of 50% of the donated sum.
It’s crucial to bear in mind that this 50% deduction is contingent upon meeting certain criteria. Notably, if the aggregate donation to Shri Ram Trust surpasses 10% of your adjusted gross total income, any excess amount beyond this threshold will not be eligible for deduction under Section 80G.
DEADLINE FOR DONATION
The timeline for donations to the Shri Ram Trust and claiming deductions is delineated by the financial year. Starting from the fiscal year 2020-21 and extending onwards, contributions made during this period are deemed eligible for deductions under Section 80G.
It’s crucial to note that the ceremonial significance of January 22, 2024, pertaining to the Pran Pratishtha of Ram Lalla at the temple, holds no bearing on the deduction process under Section 80G. Regardless of whether your donation transpires before or after this ceremonial date, you can include the contributed amount in your income tax return for the respective year, contingent upon meeting all other stipulated conditions.
DONATION RECEIPT
Securing the donation receipt for the amount contributed to the Shri Ram Trust is imperative for claiming the deduction under Section 80G. The official website of Shri Ram Janmabhoomi Teerth Kshetra provides diverse avenues for making contributions, and upon completion of the donation process, the system generates an instant donation receipt.
This receipt holds significant importance as it serves as tangible evidence for the contributed amount, enabling you to substantiate your claim for deduction in your Income Tax return. To ensure a seamless process, it is advised to retain the receipt securely, as it acts as a crucial document in the context of tax filings.
POINTS TO CONSIDER
Finally, a few points to be taken care of while claiming the deduction. Collect the donation receipt, avoid cash donations exceeding Rs. 2,000, ensure donations are specifically for the renovation/repair of the temple, and remember, this deduction is available only for taxpayers under the old tax regime.
Now, let’s talk about the Form 10BE certificate. From FY 2021-22 onwards, a certificate in Form 10BE is required as evidence to support the Section 80G deduction while filing ITR.
Conclusion: Embarking on a journey to support the Shri Ram Trust and seeking tax benefits? Ensure eligibility, stay within deduction limits, and secure the essential donation receipt. From deadlines to specific considerations, this guide empowers you to make informed contributions and claim deductions under Section 80G. Remember, supporting a cause can also be a tax-smart move. Follow these guidelines, contribute to the temple’s cause, and enjoy the dual satisfaction of giving back and availing tax benefits.
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