In the realm of tax benefits and charitable contributions, understanding the intricacies of Section 80G in the Income Tax Act is crucial for individuals seeking to make donations to Shri Ram Janmbhoomi Teerth Kshetra. CA Tarun Kumar Madaan, in a newsletter released by Taxmann, provides valuable insights into the eligibility, deduction limits, and essential considerations associated with contributions made to the Shri Ram Trust.
1. Who is eligible to claim a deduction for the amounts donated to the Shri Ram Trust?
Section 80G of the Income Tax Act extends eligibility to all categories of taxpayers, allowing individuals, companies, firms, LLPs, and others to save on taxes through donations. Both resident and non-resident taxpayers can claim deductions ranging from 50% to 100% of the donated amount. Shri Ram Trust, recognized by the Central Government as a place of historic importance, is eligible for deduction under Section 80G(2)(b) from the financial year 2020-21.
2. How much deduction can be claimed for the amount donated to the Shri Ram Trust?
A 50% deduction under Section 80G is applicable for amounts donated to Shri Ram Trust specifically for the renovation or repair of the temple. However, this deduction is subject to the qualifying limit. Donors must ensure that the total amount donated does not exceed 10% of their adjusted gross total income (GTI) to remain eligible for the deduction. Cash donations exceeding Rs. 2,000 and donations in kind are not eligible for deduction.
3. Is there a deadline for donating to the Shri Ram Trust and claiming a deduction?
Donations made to Shri Ram Trust from the financial year 2020-21 onward are eligible for deduction. Contrary to the ceremonial date of January 22, 2024, for the Pran Pratishtha of Ram Lalla, the deduction under Section 80G is not time-bound. Donations made throughout the year can be claimed in the income tax return for that year, provided other conditions are met.
4. How will I obtain the donation receipt for the amount contributed to the Shri Ram Trust?
To claim the deduction under Section 80G, a donation receipt is crucial. Shri Ram Janmabhoomi Teerth Kshetra’s official website facilitates easy contribution, allowing donors to generate an instant donation receipt by providing necessary information. This receipt, received via email as well, serves as valid proof for claiming the deduction in the Income Tax return.
5. Points to be taken care of for claiming deduction:
Donors seeking deductions under Section 80G for contributions to Shri Ram Trust should adhere to the following:
- Collect the donation receipt
- Avoid donations in kind
- Ensure cash donations are below Rs. 2,000
- Specify donations for temple renovation/repair
- Opt for the old tax regime
- Claim deduction up to 50% of the donated amount within the qualifying limit
- Fill in ‘Schedule 80G’ in the Income Tax return for claiming the deduction.
