Karnataka Government Passes Bill imposing 10% Tax on Temples Revenue Exceeding 1 crore

The State Government will collect 10% of the income generated by temples with revenue exceeding Rs 1 crore
Karnataka Government - Passes Bill - Tax - Temples Revenue Exceeding - taxscan

The Karnataka government, on Wednesday passed the Hindu Religious Institutions and Charitable Endowment Bill, 2024 in the Assembly. This bill introduced a new mandate wherein the government will collect 10 percent of the income generated by temples with revenue exceeding Rs 1 crore.

Under the jurisdiction of the Muzrai Department, there are approximately 35,000 temples, categorized into different groups based on their income levels. Group A comprises 205 temples with incomes surpassing Rs 25 lakh annually, Group B consists of 193 temples with incomes ranging between Rs 5 lakh and Rs 25 lakh, while Group C includes around 34,000 temples with incomes below Rs 5 lakh.

Previously, Group A temples contributed 10 percent of their collection box revenue to a Central Fund, while Group B temples contributed five percent. Notably, Group C temples were exempt from contributing any funds.

The Minister claimed that the funds collected will be managed by the Rajya Dharmika Parishat and will primarily support Category C temples. Additionally, welfare measures will be extended to the families of priests and other employees associated with these temples.

What is Muzrai Department

The department of Religious and Charitable Endowments popularly known as Muzrai administers about 35,000 Hindu religious institutions which receive grants from the Government of Karnataka. The department is operated under the Karnataka Hindu Religious Institutions and Charitable Endowment (amended) Act, 2011. The act has undergone amendments on 21st February 2024.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

taxscan-loader