Shirdi Trust: If you also pay income tax, then you need to stay updated with this news. Yes, the Bombay High Court has given an order about which income taxpayers should know. The Bombay High Court order said that 'Shri Saibaba Sansthan Trust' is eligible to get tax exemption on anonymous donations because it is a religious and charitable trust. Shri Saibaba Sansthan Trust manages the famous temple located in Shirdi, Maharashtra.

The appeal filed by the Income Tax Department was dismissed

A division bench of Justices Girish Kulkarni and Somshekhar Sundaresan dismissed an appeal filed by the Income Tax Department challenging the October 2023 decision of the Income Tax Appellate Tribunal (ITAT). The decision said that since the trust is a charitable and religious body, it is eligible for income tax exemption on its anonymous donations.

The institution is both a religious and charitable trust.
The High Court agreed with the tribunal and said that the institution is both a religious and charitable trust. Therefore, any anonymous donation received by such an institution will be eligible/entitled to the benefit of tax exemption. Let us tell you that there is a provision of Section 80G of the Income Tax Act for income tax exemption on donations to religious institutions. But there are some conditions to get such an exemption-

As per the rules, the organization receiving the donation should be a charitable organization registered with the Government of India or the State Government. Apart from this, the purpose of the donation should be religious, social, or other welfare work. The donor must obtain a certificate of donation, which is issued by the charitable organization. This certificate is attached while filing the income tax return.

The donation limit may vary for different charitable organizations. Donations made to some organizations may get up to 50% income tax exemption, while for some other organizations,, this limit may be lower.