Ayodhya Ram Mandir Donation : Section 80G Income Tax Deduction (Required these documents) - All you need to know about
Ayodhya Ram Mandir Donation: To get section 80G income tax deduction, collect these documents
Any Individuals who wish to donate to "Shri Ram Janma bhoomi Teerth Kshetra Trust" can donate money online and help in renovation/repair of Ayodhya Ram Mandir.
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| Ayodhya Ram Mandir |
This donation made to the Ayodhya Ram Mandir Trust shall also be eligible for tax deduction under section 80G of the Income-tax Act, 1961 only if the individual chooses the old tax regime while filing their Income Tax Return.
The Central Board of Direct Taxes (CBDT) notified 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: AAZTS6197B) to be place of historic importance and a place of public worship of renown for the purposes of the said section from the year F.Y. 2020-2021, relevant to the Assessment Year 2021-2022."
Hence, until CBDT comes out with a circular specifically mentioning that any donation to Shri Ram Janmabhoomi Teerth Kshetra Trust is not eligible for deduction under section 80G till that time all donations for repair and maintenance of the Ayodhya Ram Mandir are eligible for deduction under section 80G.
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| DONATE TO SHRI RAM JANMABHOOMI TEERTH KSHETRA |
How much deduction can be claimed for donating to Ram Mandir Trust
50% of the amount donated to the Ayodhya Ram Mandir Trust can be claimed by individuals opting for the old tax regime. However, there is a qualifying limit for this deduction.
"There is a qualifying limit of 10% of the Adjusted Gross Total Income. Adjusted gross total income would be computed by reducing from the gross total income, all deductions available under sections 80C to 80U (excluding section 80G) as well as income subject to special tax rates such as capital gains etc," says Dr. Suresh Surana, founder, RSM India, a tax and business consulting group.
For example, Anil's gross total income is Rs 7.89 lakh, and he is eligible to claim Rs 1.5 lakh under section 80C and Rs 2 lakh under section 80E for the given financial year. He donated Rs 22,000 to Ayodhya Ram Mandir Trust. Excluding the deduction for donation to Ayodhya Ram Mandir Trust Anil's adjusted gross total income is Rs 7.89 lakh- 1.5 lakh- 2 lakh= Rs 4.39 lakh. The maximum deduction that can be claimed under section 80G is 10% of Rs 4.39 lakh i.e. Rs 43,900 or the actual amount donated (Rs 22,000), whichever is lower. In this example, Anil has donated Rs 22,000 which is well within the overall limit of Rs 43,900. However, Anil can claim only 50% of the actual amount donated within the overall limit of Rs 43,900 i.e. Rs 11,000 under section 80G.
Donations in kind of any monetary value is not eligible for the deduction. Cash donations up to Rs 2,000 are eligible for 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 a donation receipt also.
However, the said individual cannot claim more than Rs 2,000 as 80G deduction while filing ITR since he donated in cash. This particular restriction of claiming up to Rs 2000 as 80G deduction is not there on donations made using other methods like UPI/Cheque/Demand Draft/NEFT/IMPS," says chartered accountant Tarun Kumar Madaan, Tax Head, Coherent Advisors, a tax consulting firm.
Documents needed to claim section 80G deduction
Form 10BE has been mandated by the income tax department from FY 2021-2022 (AY 2022-23) to claim a tax deduction for donating money to Ayodhya Ram Mandir Trust and other charitable institutions.
Form 10BE will be issued by the respective charitable organisation on or before May 31 of the financial year of the following year in which the institution has received its donation.
Hence, if an individual has donated money any time between April 2023 to March 2024, then the charitable institution must issue a donation certificate (Form 10BE) by May 31, 2024. If an individual wishes to claim section 80G because he/she has donated money to eligible charitable institutions, then the institution must issue a donation certificate (Form 10BE) to the doner.
The donation receipt which Ayodhya Ram Trust gives instantly after the donation is not the donation certificate (Form 10BE). "Section 80G(5)(viii) read with Rule 18AB of the Income-tax rules, 1962 requires charitable institutions and funds to furnish of statement of particulars comprising of all the donations received during the financial year in Form 10BD on or before the May 31 of the immediately following the financial year in which the donation is received," says Surana.
There is no clarity among tax experts if a donation certificate is needed for cash donations. "The donation receipt is a must even if it's a cash donation for an individual claiming section 80G tax deduction. However, donation certificate is not needed for any monetary donations including cash for Ram Mandir Trust." says Madaan. "Tax deduction for donations (including cash) without a donation certificate in Form 10BE, cannot not be claimed under section 80G by individuals .
Hence it is advisable to collect donation certificate (Form 10BE) from the charitable institution to claim deduction," says Mihir Tanna, associate director, S.K Patodia and associates, a CA firm. "However, a certificate in Form 10BE will not be issued in case of Ayodhya Ram Mandir Trust and donation receipt is likely to be considered as proof of evidence to validate the deduction claimed under section 80G for donations specifically given for the purpose of renovation/repair of the Ram temple," says Tanna. Given below is the donation receipt which an induvial gets after donating money to Ayodhya Ram Mandir Trust.
What is Form 10BE donation certificate?
From FY 2021-22, an individual needs a donation certificate to claim section 80G deduction. This donation certificate is like a TDS certificate where details of the amount and name of the person is mentioned. Without this donation certificate section 80G deduction cannot be claimed.
Disclaimer -
The information contained in this article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. In all cases, you should consult with professional advisors familiar with your particular factual situation for advice concerning specific matters before making any decisions.
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