Government has notified Shri Ram Janmbhoomi Teerth Kshetra Trust as a place of public worship and historical significance for the purpose of making donations under income tax act for the financial year 2020-21.
In a notification issued on friday, the Central Board of Direct Taxes (CBDT) allowed tax exemption to donations under Section 80 G of the Income Tax Act, on the grounds that the structure would be a “place of historic importance and a place of public worship”.
Section 80G of I-T Act permits donations made to specified charitable institutions like temple, mosque or church, and relief funds as a deduction from your gross total income before reaching at taxable income. Under this, 100% of donations made by the income tax taxpayers to this trust would be allowed as deduction while computing their taxable income, subject to maximum limit of 10% of their gross total income.
Shri Ram Janmabhoomi Teerth Kshetra was set up as a trust for the purpose of the construction of the temple,after decades of legal battle, the Supreme Court had, ruled that the disputed site at Ayodhya should be handed for the construction of a Ram temple.