Would temple construction and renovation and facility management in temples by an NGO amount to religious activity according to the IT Act? The NGO won’t be involved in prayers, kirtans, or the like.
The word religious activity is not defined in IT law. Whether the religious purpose is public or private becomes the point of decision. Therefore, activities like construction, renovation and maintenance by a public religious trust managing a temple for public at large will be entitled to section 11-12 benefits.
Asking for 80G perspective. In my opinion, the construction, renovation and maintenance of the temple and then handing it to the public for managing its religious affairs should be considered a welfare activity. What do you think
Religious institutions do not get 80G approval and therefore cannot pass on such benefit to donors. It is difficult to consider 80G benefit for donors to the temple for running and maintenance since the temple cannot be transferred to a charitable institution (not included in 2(15) even if we consider dissolution of the religious trust. The slight possibility is the temple property is transferred on dissolution of the religious trust holding the property to a charitable cum religious institution which has 80G approval. In such case, contribution to such charitable cum religious trust could facilitate 80G benefit to donors subject to 80G conditions for charitable cum religious trust as stated in 80G(5).