The Central government has declared that donations made to the Somnath Temple would be exempt from taxes means from today Donations To Somnath Temple are Tax-Free. The Somnath Temple is located along the coastline in Gujrat’s Saurashtra region and is managed by the Shree Somnath Trust. A notification issued by the Income Tax Department’s Central Board of Direct Taxes declared “the Somnath Temple managed by the Shree Somnath Trust as a place of historic importance and a place of public worship of renown for the purposes of the section 80G“.
Section 80G:- Under which Central Government declared the Donations To Somnath Temple are Tax-Free
One of the best ways to save money on tax while also doing your bit to contribute to the world is by making donations towards charities that will then give you deductions under Section 80G. These have to be trusts or institutions that are eligible.
Section 80G of the Income Tax Act primarily deals with donations made towards charity, with an aim to provide tax incentives to individuals indulging in philanthropic activities. This section offers tax deductions on donations made to certain funds or charities. An amount donated by an individual to an eligible charity can be claimed as a tax deduction while filing an income tax return.
Section 80G Eligibility
All taxpayers (individuals/companies/Hindu Undivided Families) are eligible to make donations to charity under Section 80G and claim a deduction, subject to limits set down by the government. NRIs are also entitled to the benefits under Section 80G, provided their donations are to eligible trusts or institutions. Donations Permitted under Section 80G
Individuals who wish to claim deductions under section 80G need to ensure that the organization they are donating to falls under the purview of this Act. Only those donations made to registered and valid funds or charitable institutions qualify for suitable deductions. Trusts and charities need to be registered under Section 12A post which they qualify for the 80G certificate. Individuals are advised to check the credentials of an organization before donating to it.
Exemptions under Section 80G
Not all donations made by an individual qualify for deductions under Section 80G. Donations made to foreign trusts and political parties are not covered under the ambit of this section and individuals cannot claim tax deductions for such donations.
Deduction under Section 80G
Donations paid towards eligible trusts/charities which qualify for tax deductions are subject to certain conditions. Donations under Section 80G can be broadly classified under four categories, as mentioned below.
Donations with 100% deduction (Without any qualifying limit): Donations made under this category enjoy 100% tax deduction and are not subject to any qualification limit being met. Donations to the National Defense Fund, Prime Minister’s National Relief Fund, The National Foundation for Communal Harmony, National/State Blood Transfusion Council, etc. qualify for such deductions.
Donations with 50% Deduction (Without any qualifying limit): Donations made towards trusts like Prime Minister’s Drought Relief Fund, National Children’s Fund, Indira Gandhi Memorial Fund, etc. qualify for a 50% tax deduction on the donated amount.
Donations with 100% deduction (Subjected to 10% of adjusted gross total income): Donations made to local authorities or government to promote family planning and donations to the Indian Olympic Association qualify for deductions under this category. In such cases, only 10% of the donor’s Adjusted Gross Total Income is eligible for deductions. Donations that exceed this amount are rounded off to 10%.
Donations with 50% deduction (Subjected to 10% of adjusted gross total income): Donations made to any local authority or the government which would then use it for any charitable purpose qualify for deductions under this category. In such cases, only 10% of the donor’s Adjusted Gross Total Income is eligible for deductions. Donations that exceed this amount are capped at 10%.
Scope of Deduction:
There are certain basic criteria that must be met for a donation to be valid under Section 80G. Some of the major points are mentioned below.
Donations should be paid through taxable or exempted income only. Donations made through other non-taxable income sources do not qualify for the deduction.
Only those donations which are paid in cash or cheque are eligible, with donations made in the form of clothes, food, medicines, etc. not eligible under Section 80G.
Only companies are eligible for deductions when it comes to donations made to the Indian Olympic Association. Only those donations made to valid and registered trusts qualify for deductions.
Donation made to foreign institutions and political parties is exempt from deductions. Documents Required to Claim Deduction under Section 80G
Individuals wishing to claim deduction under Section 80G need to have the following documents to support their claim.
1. Duly Stamped Receipt: It is mandatory to have a receipt issued by the trust/charity which receives a donation. This receipt should include details like the name, address, and PAN number of the trust, the amount donated, and the name of the donor. (Refer From- Income Tax Act)
2. Form 58: Form 58 is essential if a donor intends to claim a 100% deduction on a donation, without which their donation will not be eligible for a 100% deduction.
3. Registration Number of Trust: Each eligible trust is provided with a registration number by the Income Tax Department and donors should ensure their receipt contains this number.
This registration number needs to be valid on the date of a particular donation, failing which a donation might be ineligible for deductions. The notification dated April 11, 2022, states, “In the exercise of the powers conferred by clause (b) of sub-section (2) of section 80G of the Income-tax, 1961 (43 of 1961), the Central Government hereby notifies the Somnath Temple managed by Shree Trust (PAN: AAATS9555Q) to be a place of historic importance and a place of public worship of renown for the purpose of the said section.
” Since the exemption has been provided under Sub-section 2 of Section 80G, an income tax deduction would be allowed to the extent of 50% to those who donate to the trust from the current financial year. Section 80G on Income Tax- Section 80G of the Income-tax Act primarily deals with donations made towards charity, with an aim to provide tax incentives to individuals indulging in philanthropic activities.
This section offers tax deductions on donations made to certain funds or charities. An amount donated by an individual to an eligible charity can be claimed as a tax deduction while filing an income tax return. The donation must be made in monetary terms. A donation up to Rs. 2,000 can be made in cash, but any amount above that must be made through cheque, bank transfer, etc.
The various donations specified in Section 80G are eligible for a deduction of up to 100% or 50% with or without restriction, as provided in Section 80G. Since the exemption has been provided under sub-section 2 of Section 80G, the income tax deduction would be allowed to the extent of 50% to those who donate to the trust from the current financial year. The Somnath Temple- Central declared Donations To Somnath Temple are Tax-Free.
Now let us see the History of the Somnath temple and some interesting facts about the Somnath temple:- The Somnath temple also known as the Deo Patan located in Veraval in Saurashtra on the western coast of Gujrat is the first among the twelve Jyotirlinga shrines of Shiva. It is one of the most sacred pilgrimage sites for the Hindus and is believed to be the first among the twelve Jyotirlinga shrines of Shiva.
It is believed to have been raided and plundered at least 17 times in history. Somnath’s first temple is said to have existed 2000 years ago. In 649 AD, king Maitre of Vallabhaneni built a second temple in place of the temple and renovated it. In 725, the old ruler of Sindh took his army and attacked the temple, and destroyed the temple. In 1026, Mahmud Ghazni looted the precious jewels and property of Somnath temple after looting, slaughtering innumerable pilgrims of the temple and burning the temple, and destroying it. Afzal Khan, the commander of Ala-ud-din Khilji, plundered it again in 1394 and it was destroyed again.
In 1706, Mughal ruler Aurangzeb again demolished the temple. Sardar Vallabhbhai Patel, the Irom man of India, was instrumental in the construction of the present temple. The first President of India Dr. Rajendra Prasad installed the Jyotirling in the new temple on May 11, 1951. This is all about the Donations To Somnath Temple Tax-Free and the history of Somnath temple. Now you will not have any questions about the Donations To Somnath Temple Tax-Free and the history of Somnath temple.