ITAT Rules Ramkatha and Yagnas Are Welfare Activities, Not Religious Propagation, Grants Tax Exemption
Tribunal Says Fundraising Through Kathas Supports Education, Healthcare, and Animal Welfare, Not Religion
Decision Clarifies Section 80G Eligibility for Charitable Trusts Organising Spiritual Events
By Our Legal Correspondent
New Delhi: December 05, 2025:
In a landmark ruling, the Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, has clarified that organising Ramkatha, Bhagwat Katha, and Yagnas for fundraising cannot be treated as religious propagation. Instead, such activities are welfare-oriented when conducted by charitable trusts to raise funds for education, healthcare, animal welfare, and other social causes.
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The decision came in the case of Dharamdas Charitable Trust, which had applied for approval under Section 80G of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemptions) had earlier rejected the application, arguing that the trust’s objectives included religious activities. The ITAT overturned this decision, granting approval and setting an important precedent for charitable organisations across India.
Background of the Case
- Trust’s Objectives: Dharamdas Charitable Trust was registered under Section 12A of the Income Tax Act. Its objectives included education, skill development, healthcare, relief to the poor, shelter for widows and orphans, food centres, and animal welfare.
- Disputed Clause: One clause in the trust deed allowed the organisation of Ramkatha, Bhagwat Katha, Navchandi Yagna, and Gayatri Yagna to raise funds.
- CIT(E)’s Rejection: The Commissioner of Income Tax (Exemptions) rejected the trust’s application for 80G approval, claiming that these activities were “wholly or substantially religious.”
- ITAT’s Ruling: The tribunal examined the trust deed and clarified that such events were not religious propagation but welfare fundraising.
ITAT’s Key Observations
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- Spiritual ≠ Religious Propagation: The tribunal noted that Ramkatha and Bhagwat Katha are spiritual events open to all, irrespective of religion. They promote moral upliftment and ethical living.
- Fundraising for Welfare: The purpose of organising these events was to raise funds for charitable activities like education, healthcare, and animal welfare.
- Public Benefit: The tribunal emphasised that these events benefit the public at large, not just followers of a particular faith.
- Section 80G Eligibility: Since the trust’s primary objectives were charitable, approval under Section 80G could not be denied merely because one clause mentioned spiritual events.
Legal Context
- Section 80G of the Income Tax Act: Provides tax exemption to donors contributing to approved charitable institutions.
- Section 12A Registration: Charitable trusts must be registered under Section 12A to claim exemptions.
- Religious vs. Charitable Activities: Indian tax law distinguishes between religious propagation and charitable welfare. The ITAT ruling clarifies that spiritual events conducted for fundraising fall under welfare, not religion.
Implications of the Ruling
- For Charitable Trusts: Trusts organising Kathas and Yagnas for fundraising can now seek 80G approval without fear of rejection.
- For Donors: Contributions to such trusts will qualify for tax exemptions, encouraging philanthropy.
- For Tax Authorities: The ruling provides clarity on distinguishing between religious propagation and welfare fundraising.
- For Society: The decision supports charitable initiatives that rely on cultural and spiritual events to mobilise resources.
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Expert Reactions
- Tax Professionals: “This ruling is a relief for trusts that use spiritual events to raise funds for welfare. It ensures that genuine charitable activities are not penalised.”
- Charity Sector Leaders: “Many organisations depend on Kathas and Yagnas to mobilise donations. The ITAT’s decision validates their efforts.”
- Legal Analysts: “The tribunal has rightly drawn a line between religious propagation and welfare fundraising. This will guide future cases.”
Broader Impact
The ruling is expected to influence similar cases across India. Many charitable trusts organise spiritual events to connect with communities and raise funds. By clarifying that such activities are welfare-oriented, the ITAT has strengthened the charitable sector’s ability to mobilise resources.
It also reflects India’s pluralistic ethos, where spiritual traditions can coexist with welfare objectives without being labelled as religious propagation.
Conclusion
The ITAT Ahmedabad bench’s ruling that Ramkatha, Bhagwat Katha, and Yagnas are welfare activities, not religious propagation, is a landmark in tax jurisprudence. By granting 80G approval to Dharamdas Charitable Trust, the tribunal has ensured that charitable organisations can continue to use cultural and spiritual events to raise funds for social welfare.
This decision balances respect for India’s spiritual traditions with the need to promote charitable activities, reinforcing the principle that charity transcends religion.
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