Tax savings 2025: Section 80G's tax benefits under Old Tax Regime - Explained

Tax savings under Old Tax Regime: Taxpayers seeking to optimise their savings for the fiscal year 2024-25 still have opportunities available. One such option is utilising Section 80G of the Income Tax Act to claim deductions for donations made to government-approved trusts. It is important to note that not all charitable contributions automatically qualify for tax benefits under this provision.

Among the eligible beneficiaries is the Shri Ram Janmabhoomi Teerth Kshetra Trust. Donations made to this trust, whether through online channels or in cash (up to Rs 2,000), are eligible for a Section 80G deduction, provided the donor has chosen the old tax regime.

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The deduction can range up to 50% of the donated amount, subject to specific conditions. The Central Government has officially acknowledged the Shri Ram Trust as a historically significant place of worship under Section 80G(2)(b) of the Income Tax Act.

Taxpayers, whether resident or non-resident, who donate to approved funds, institutions, or associations can claim a deduction from their gross total income.

The deduction can be either 100% or 50% of the donated amount, with some donations being subject to a maximum limit. Importantly, this benefit is only available to those who have not shifted to the new tax regime, which does not permit such deductions.

Deduction under Section 80G

The calculation of the deduction under Section 80G involves determining the adjusted gross total income. This is done by subtracting certain deductions like those under Section 80C, as well as specific incomes, such as short-term capital gains under Section 111A, from the gross total income. The maximum permissible deduction is generally 50% of either the donated amount or 10% of the adjusted gross total income, whichever is lower. However, certain funds allow for a 100% deduction without any limit, such as the National Defence Fund and the Prime Minister's National Relief Fund.

Donation to  Shri Ram Trust

To obtain a valid donation receipt from Shri Ram Trust for temple renovation or repair, and to avail of tax benefits under the old tax regime when filing your ITR, report the donation details in Schedule 80G of your ITR form.

You can contribute to the Ram Mandir through the Shri Ram Janmabhoomi Teerth Kshetra Trust by following these steps:

Visit the official website of Shri Ram Janmabhoomi Teerth Kshetra Trust at [https://srjbtkshetra. org/](https://srjbtkshetra. org/)

Find the 'Donate' tab on the homepage and click on it

Log in using your mobile number and OTP, or register using your details

Select one of the three authorized bank accounts: SBI, PNB, or BoB. (Specific bank account details for non-Indian passport holders are available on the official website)

Enter your name, donation purpose, PAN number, donation amount, address, mobile number, and email ID

Choose from payment options such as payment gateway, UPI, NEFT, IMPS, demand draft, or cheque.

Donations exceeding 10%

Donations exceeding 10% of the adjusted gross total income are not eligible for tax deductions. Furthermore, cash donations above Rs. 2,000 are not deductible, and donations made in kind are entirely excluded from eligibility. To claim the deduction, donors must ensure that the recipient institution files a donation statement with the Income Tax Department and provides a Form 10BE certificate. This form serves as proof of the donation and specifies the amount donated during the financial year.

Funds and tax deduction

Various funds are eligible for different deduction rates. For instance, donations to certain institutions like the PM Drought Relief Fund can receive a 50% deduction without a cap, whereas others might involve a maximum limit. It's essential to verify the category of the fund or institution to determine the applicable deduction rate. The list of eligible institutions is updated periodically, and taxpayers should confirm the institution's approval status before making a donation to ensure eligibility for deductions.