Income Tax Department Provides Clarification on Eligibility for Deductions on Donations to Ram Mandir

In a recent update, the Income Tax department has clarified that contributions made towards the repair, reconstruction, or renovation of the Ram Mandir in Ayodhya, through the Shri Ram Janmabhoomi Teerth Kshetra Trust, are now eligible for deductions under Section 80G (2) (b) of the Income-tax Act, 1961.

According to the government's notification, 50 percent of donations aimed at temple repair or renovation can be claimed as a deduction. It's worth noting that cash donations exceeding Rs 2,000 are not eligible for this benefit. The Central Board of Direct Taxes (CBDT) has explicitly affirmed that donations to the Shri Ram Janmabhoomi Teerth Kshetra qualify for this tax benefit.

Section 80G of the Income-tax Act

Section 80G of the Income-tax Act, 1961 is a provision designed to encourage charitable contributions by offering tax deductions to individuals and organizations in India. This section enables taxpayers to claim deductions on donations made to specified charitable institutions and funds, ultimately leading to a reduction in their taxable income.

Under Section 80G, individuals and entities can contribute to eligible charitable organizations, and the amount donated qualifies for a deduction while calculating their total taxable income. This serves as an incentive for philanthropy and supports various social, educational, and health-related causes.

To benefit from Section 80G, taxpayers should ensure that their donations meet the specified criteria laid out by the Income tax Act. The article provides a comprehensive guide on how Section 80G operates, outlining the process by which charitable contributions can translate into income tax savings.

Also Read: Important Update for PAN Card Holders: Income Tax Department May Impose Rs 10,000 Fine Check Details

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