Income Tax: The new financial year will start from 1 April. You can claim tax saving on investments or donations made till 31 March 2025. But let us know what are the rules regarding this.
Tax Saving on Donation: If you want to save tax for the financial year 2024-25, then you still have some time. If you have made all kinds of investments for tax saving under the old tax regime, then Section 80G can be beneficial for you. But for this you will have to donate to the trust set by the government. Let us tell you that donation made to any trust is not valid for tax deduction under Section 80G.
Tax deduction on donations is limited to a maximum of 50%
But after knowing this, you must be wondering about Section 80G and why the tax deduction on donations made to Ayodhya Ram Temple is limited to a maximum of 50%? Actually, there are three reasons why this deduction is limited to 50%. The first reason is that through Section 80G, it is decided how much income tax deduction is to be made for which donation? Second, the total income dependent eligibility limit (provision introduced by the government) and third, is the method of donation online / offline? On the basis of these three, it is decided how much deduction you can claim.
Deduction will not be applicable on such donations
Amit Maheshwari, tax partner at tax and consulting firm AKM Global, said that donations made to the Ayodhya Ram temple through Shri Ram Janmabhoomi Teerth Kshetra Trust are eligible for 50% deduction under section 80G. In fact, the trust has been notified under sub-clause (B) of section 80G (2), making donations for the renewal or repair of the temple eligible for tax deduction. He said that donations given in religious events or social welfare activities are not eligible for this deduction.
Let us tell you that 50% deduction is under the qualified limit of 10% of your Gross Total Income (GTI). Any donation amount exceeding the 10% limit will not be eligible for deduction. Gross Total Income (GTI) is calculated by deducting all deductions under sections 80C to 80U (except section 80G itself) and any income from short term and long term capital gains. This means that only 50% of the donated amount is eligible for deduction. But this deduction cannot exceed 10% of your total income.
