Donations to Ram Mandir offer 50% tax deduction

Donations to the Shri Ram Janmabhoomi Teerth Kshetra Trust are eligible for tax deductions under Section 80G of the Income Tax Act, 1961. However, individuals can only claim a deduction of up to 50% of their donation amount. There are some important rules regarding these donations. First, donations must be made for the purpose of temple renovation or repair to qualify. Donations for religious events are not eligible. Also, the deductible amount is limited to 10% of one’s adjusted gross total income after some deductions. For example, if a taxpayer has a total income of Rs 8,00,000 and deducts Rs 1,50,000 under Section 80C, their adjusted income would be Rs 6,50,000. A 10% limit means they can deduct a maximum of Rs 65,000. If they donate Rs 40,000, they can claim Rs 20,000, which is half the donation and within the limit. Donations made in cash over Rs 2,000 do not qualify for deductions. To maximize tax benefits, online donations or cheque payments are encouraged, as these have no upper limit for claiming deductions. Notably, the trust does not require Form 10BE for donations, meaning individuals can claim deductions without an ARN number in their income tax return. Taxpayers can provide the donation receipt as evidence if the tax department requires clarification about the deductions claimed. Overall, donating to the Ayodhya Ram Mandir through this trust can be an effective way to save on taxes if done correctly.