[Analysis] Section 80G Deductions for Donations to Shri Ram Mandir – Eligibility | Limits | Compliance

Table of Contents

1. Who is eligible to claim a deduction for the amounts donated to the Shri Ram Trust?
2. How much deduction can be claimed for the amount donated to the Shri Ram Trust?
3. Is there a deadline for donating to the Shri Ram Trust and claiming a deduction?
4. How will I obtain the donation receipt for the amount contributed to the Shri Ram Trust?
5. Points to be taken care of for claiming deduction
6. Does the donor need a Form 10BE certificate to claim a deduction for the amounts donated to Shri Ram Trust?
7. How to claim a deduction in the ITR Form?

Section 80G provides a deduction to the donor, irrespective of his residential status, who has paid any sum as a donation to the prescribed funds, institutions, associations, etc. This provision contains four categories of deductions where 100% deduction is allowed with or without maximum limit and 50% deduction with or without maximum limit.

The list of funds or institutions eligible to provide deductions for the donations made to such funds or institutions is provided in clauses (a) to (d) of sub-section (2) of Section 80G. Clause (a) provides the names of the eligible funds or institutions or classes of such funds or institutions. Clause (b) provides the purpose eligible to provide deductions if the donation is paid for such purpose, namely, renovation or repair of any temple, mosque, gurdwara, church, etc. Clause (c) provides deductions to the Indian companies for making donations to the Indian Olympic Association or any other body for the development of sports infrastructure. Clause (d) is redundant.

The funds or institutions listed in sub-clause (iv) of clause (a) of Section 80G(2) mentioned above are required to comply with the additional conditions to make the donations received eligible for the deductions in the hands of the donor under Section 80G. These conditions are listed in Section 80G(5). One of such conditions provides that the recipient fund or institution files a statement of donation to the Income-tax department in Form 10BD and issues a certificate of donation to the donor in Form 10BE. If a fund or institution is notified in any sub-clause of clause (a) except sub-clause (iv) of Section 80G(2), it will not be required to comply with the conditions of Section 80G(5), including filing of statement in Form 10BD and issuing certificate in Form 10BE.

The Shri Ram Janmabhoomi Teerth Kshetra (PAN: AAZTS6197B) (‘Shri Ram Trust’) has been notified¹ under sub-clause (b) of Section 80G(2). Consequently, all the additional conditions of Section 80G(5) shall not apply to Shri Ram Trust to provide the deduction to the donors for donating to such trust.

In the subsequent part of the article, all your queries relating to the donation to the Shri Ram Trust have been answered.

1. Who is eligible to claim a deduction for the amounts donated to the Shri Ram Trust?

Section 80G of the Income Tax Act of 1961 allows all categories of taxpayers, including individuals, companies, firms, LLPs, etc., to save tax by donating money to eligible charitable institutions. Both resident and non-resident taxpayers can claim this deduction. By donating to eligible institutions and organisations, taxpayers can claim deductions ranging from 50% to 100% of the amount donated.

The Central Government has notified² Shri Ram Trust as a place of historic importance and a place of renowned public worship for the purpose of Section 80G(2)(b) w.e.f. FY 2020-21. Hence, the donations made to renovate or repair the temple are eligible for deduction.

2. How much deduction can be claimed for the amount donated to the Shri Ram Trust?

50% of the amount donated for renovation/repair of the Mandir to Shri Ram Trust is eligible for deduction under Section 80G. Donations for purposes other than the renovation or repair of the temple are not eligible for deduction. Further, this 50% deduction under Section 80G shall be subject to the qualifying limit. Payments to certain institutions are eligible for 100% or 50% without any qualifying limit. However, sometimes, you must determine the maximum qualifying limit eligible for deduction. If the total amount donated to Shri Ram Trust exceeds 10% of your adjusted gross total income (GTI), any excess amount beyond the 10% limit will not be eligible for deduction.

It is important to note that only taxpayers who opt for the old tax regime while filing ITR can claim this deduction. Taxpayers who have chosen to file their ITR under the new tax regime are not entitled to this benefit. Therefore, if you have opted for the new tax regime, you cannot claim any Section 80G deduction while filing your ITR.

The donor can claim a deduction for donations made through cash or cheque. However, cash donations exceeding Rs. 2,000 are not eligible for deduction. Also, it is important to note that donations made in kind are not eligible for deduction under this provision.

3. Is there a deadline for donating to the Shri Ram Trust and claiming a deduction?

Shri Ram Trust is notified under 80G(2)(b) from the F.Y. 2020-2021. Hence, donations made from the FY 2020-21 onwards are eligible for a deduction. January 22, 2024, is a ceremonial date for the Pran Pratishtha of Ram Lalla at the temple in Ayodhya. However, this date is not relevant for the deduction under Section 80G. Any donations made during the year can be claimed as a deduction in the income tax return to be filed for that year. Therefore, even if you donate before or after January 22, you can claim the deduction in your income tax return for that year, subject to the fulfilment of other conditions.

4. How will I obtain the donation receipt for the amount contributed to the Shri Ram Trust?

To claim the deduction under Section 80G, it is crucial to have the donation receipt. The official website of Shri Ram Janmabhoomi Teerth Kshetra offers various options and modes for contributing the amount. A person can log in using Mobile OTP and provide information such as name, purpose of donation, donor PAN Number, donation amount, address, mobile number, email ID, etc. The donation receipt is generated instantly and can be downloaded by the donor. The donor will also receive the donation receipt via email. This receipt will serve as sufficient proof to claim the deduction in the Income Tax return.

5. Points to be taken care of for claiming deduction

The following considerations should be taken care of while claiming the deduction under Section 80G for the amounts donated to Shri Ram Trust:

• Donors should collect the donation receipt
• Donations should not be in kind
• Donations exceeding Rs. 2,000 should not be in cash
• Donations should be specifically given for the renovation/repair of the temple
• Donors should not be opting for the new tax regime
• Deduction can be claimed up to 50% of the amount donated subject to the qualifying limit
• Deduction can be claimed in the income tax return by filling in the information in ‘Schedule 80G’ in ITR

6. Does the donor need a Form 10BE certificate to claim a deduction for the amounts donated to Shri Ram Trust?

From FY 2021-22 onwards, a certificate in Form 10BE is required as evidence to support the Section 80G deduction to be claimed while filing ITR. The deduction will only be allowed if the fund or institution provides the details of the donation and donor in the statement filed in Form 10BD electronically on the income tax department’s e-filing portal.

However, it is important to note that this reporting requirement to file a statement of donation in Form 10BD and issuance of Form 10BE is required only for those NGOs which are under the approval category, i.e. Section 80G(2)(a)(iv). In contrast, Shri Ram Trust is a notified trust as a place of historical importance and a place of public worship of renown under clause (b) of Section 80G(2). Hence, it is not obligated to file a statement of donations in Form 10BD and is not required to issue a certificate in Form 10BE. Therefore, the donation receipt shall suffice as proof of payment while claiming the Section 80G deduction in ITR by donors.

7. How to claim a deduction in the ITR Form?

To claim a deduction under section 80G, the taxpayer must provide the details of his donations in ‘Schedule 80G’ in the ITR form as applicable to them. This schedule consists of four tables, each corresponding to a different category of NGO/charitable institution.

• Table A – It is used to report donations eligible for a 100% deduction without any qualifying limit.
• Table B – It is used to report donations eligible for a 50% deduction without any qualifying limit.
• Table C – It is used to report donations eligible for a 100% deduction subject to a qualifying limit.
• Table D – It is used to report donations eligible for a 50% deduction subject to a qualifying limit.

One must ensure that donation information is entered in the correct table. The donation to Shri Ram Trust shall be filled in Table D. While filling the table; a taxpayer will be required to provide the following details of their donations to charitable institutions or specified funds during the year:

• Name and address of the donee
• PAN of the donee
• Total amount of the donation – with a break-up of the amount paid in cash and other modes
• Eligible amount of the donation, which is the amount that is eligible for deduction

1. Notification S.O. 1434(E), dated 8-5-2020
2. Notification S.O. 1434(E), dated 8-5-2020