Donations to the Ayodhya Ram Mandir may qualify you for an income tax deduction under the old I-T regime. Individuals who have opted for the old tax regime can claim up to 50% deduction under Section 80G while donating funds to the Shri Ram Janmabhoomi Teerth Kshetra — provided that their cash contribution does not exceed Rs 2000. Donations in kind also remain ineligible for a tax exemption.
According to details outlined on the Trust website, 50% of voluntary contributions are eligible for deduction under Section 80G of the Income Tax Act. This will only apply to funds supplied for the purpose of renovation or repair of the Mandir. It is pertinent to note that donations for any other activities — including religious events or social welfare initiatives — will not qualify for such an exemption.
What does Section 80G say?
The grand temple was recognised as a historically significant and renowned public place of worship in 2020 — making it eligible for certain deductions under sub-clause 9 (b) of Section 80G (2). The Income Tax Act specifies that contributions for the “renovation or repairs of notified temples etc” will be eligible for a deduction of 50% of net qualifying amount.
This qualifying limit is however capped at 10% of the donor’s Adjusted Gross Total Income. Gross total income is calculated after subtracting all deductions under Sections 80C to 80U (with the exclusion of Section 80G) as well as any income subject to short-term and long-term capital gains from the GTI.
Existing provisions of Section 80G also mandate that no deduction will be allowed for donation of any sum exceeding Rs 2,000 unless “sum is paid by any mode other than cash”. Put more simply this indicates that this particular restriction will not apply for donations made via UPI, cheque, demand draft, NEFT, IMPS etc.
