Center grants tax exemption to donors contributing for construction of the Ayodhya Ram Temple

The Central Board of Direct Taxes has issued a notification, in which the Shri Ram Janambhoomi Teerth Kshetra was included under Section 80G (2)(b) of the Income Tax Act. The Center categorized the site of temple, as a place of public worship and a place of historic importance.  

Section 80G talks about deduction in respect of donations to certain funds, charitable institutions. Clause b of sub- section 2 states that “any sums paid by the essence in the previous year as donations for the renovation or repair of a temple, church, mosque, gurudwara or other such place as notified by the Central government in the official gazette to be historic, archeological or artistic importance or to be a place of public worship of reown throughout any State.”

This exemption under Section 80G will allow such donations to be considered as deductions from the gross total income before filling taxes. Those who donate to this trust, will be allowed deduction of taxes of up to 50% for the financial year of 2020-21.

The exemption provided under Section 80G is not available to all religious trusts. A religious trust has to register for income tax exemption under Section 11 and Section 12 of the Income Tax Act. After this, the donors are eligible for such exemptions.  

This comes after the Supreme Court allowed the construction of Ram Temple, following which Shri Ram Janambhoomi Teerth Kshetra Trust was formed.