Under Section 80G of the Income Tax Act, contributions made to organizations involved in the preservation or maintenance of historical monuments may qualify for deduction. Depending on the institution's classification and the specifics of Section 80G, the deduction amount may change.
100% Deduction for Certain Donations
In some cases, donations made for the preservation or maintenance of historical monuments may qualify for a 100% deduction under Section 80GGB or Section 80GGC of the Income Tax Act. These sections provide deductions for donations made to political parties or electoral trusts. If the organization involved in monument preservation or maintenance is registered as a political party or electoral trust, you may be eligible for a 100% deduction on the donated amount.
Corporate Social Responsibility (CSR)
For corporate taxpayers, expenses incurred in the preservation or maintenance of historical monuments can be considered as part of their Corporate Social Responsibility (CSR) activities. The Companies Act, 2013 mandates certain companies to spend a certain percentage of their average net profit on CSR activities. If the preservation or maintenance of historical monuments falls within the eligible CSR activities, the expenses incurred can be claimed as deductions.
Specific Provisions and Approvals
It is important to note that claiming deductions for expenses related to the preservation or maintenance of historical monuments may require compliance with specific provisions and approvals. The competent authorities, such as the Central Board of Direct Taxes (CBDT) or the Archaeological Survey of India (ASI), must recognise and sanction the organisation or institution engaged in monument preservation. Ensure that the organization has the necessary certifications or approvals to qualify for deductions.
When claiming deductions for preservation or maintenance expenses of historical monuments, maintain proper documentation of the donations made, receipts, and certificates issued by the approved organization. This documentation is essential to substantiate the claim during the tax assessment process.
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