In a notification issued 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”.
Under this, 100% of donations made by 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, experts said.
The Shri Ram Janmabhoomi Teerth Kshetra was set up as a trust for the purpose of the construction of the temple, following the Supreme Court decision in the Ram Janmabhoomi-Babri Masjid case.
The first phase of construction began on March 25, after the “Pran-Pratishtha” ceremony by UP chief minister Yogi Adityanath. Clearing of the site has gained momentum after the UP government allowed construction activity to resume from May 4.