• Article classified temples under categories and also by State because state laws are different. For private temples what is the legal structure under which they operate. What are the income-tax compliances for a Charitable Trust?

DRAFT FOR REVIEW

During the debate on Waqf on social media some asked, how are Hindu Temples managed? Even though this is a complex subject I have tried to explain.  

In normal parlance when the word Hindu is often used – it means followers of Sanatan Dharma. However, under the Hindu Marriage Act 1955 and the Income-Tax Act 1961 the word Hindu includes Buddhist, Jains and Sikhs. Jains were declared a Minority ahead of the 2014 Lok Sabha polls and Buddhist/Sikhs were declared a minority around 1922-93 yet they are Hindu under these two Acts. Further Sikh Gurudwaras in Punjab, Himachal, Chandigarh and Jammu & Kashmir are governed by the SGPC Act of 1925.

So when I use the word Hindu in this article am referring to Sanatan Dharma. Hindu Temples can be classified under categories – 

1. Those managed by Archaeological Survey of India (ASI) – Most ASI monuments have no live worship for e.g. Kandhariya Mahadev Temple, Khajuraho with exceptions for e.g. Matangeswara temple has live worship.

 Managed by ASI

2. Temples in southern states of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana are governed by State Acts and managed by state governments. Acts are Madras Hindu Religious and Endowments Act 1927, Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, Telangana Charitable and Hindu Religious Institutions and Endowments Act, 1987, Karnataka Hindu Religious Institutions and Charitable Endowments act 1997 and Rules 2002 and Travancore-Cochin Hindu Religious Institutions Act, 1950.  

3. Temples like Vaishnodevi and Tirupati are controlled by state governments. “Shri Mata Vaishno Devi Shrine Board was set up in August 1986 under the provisions of The Jammu and Kashmir Shri Mata Vaishno Devi Shrine Act, 1988. The Governor of the state of Jammu and Kashmir by virtue of his office is the ex-officio Chairman of the Board. He nominates nine members in the Board at the policy making level. The Board discharge its duty through a Chief Executive Officer who is assisted by the Addl. Chief Executive Officer and various Area Heads and Functional Heads.”

Tirupati Mandir. “The Government of Andhra Pradesh appointed the TTD Board vide GO Ms. No. 243, Rev (Endts.-III) Dept., dated: 01.11.2024. TTD is a conglomeration of temples, brought under the First Schedule 2 of the Act 30 of 1987. The Board of Trustees is constituted by members appointed by the government. The Executive Officer is the chief executive of TTD.”

Kerala has five Devaswom Boards namely  Koodalmanikyam, Guruvayur, Travancore, Malabar, Cochin

Malabar Devasom Board in Kerala – “In addition to the temples to which the H.R & C.E Act was made applicable, considerable number of public religious institution also came within the purview of the Act due to the exercise of power of the Government by notification to extend the provisions of the H.R & C.E Act 1956.” The law was amended in 2008. 

“Among the peculiarities, the right of administration of the temple is vested with the trustee or Board of trustees, consisted of hereditary trustees by succession and non-hereditary trustees appointed by the authorities under the Act, is prominent. The temples are having separate entities, and as such its funds also. There is no provision in the Act to pool the funds to a common fund. The Malabar Devaswom Board is exercising supervisory control of the temple administration, to see that the funds are utilized for the beneficial interest of that institution, in a proper, transparent and lawful manner in the same manner.” Members of Board as seen on 22.4.25 at 4.28 pm

4. Private Temples like we see across India.

5. Some older Jain monuments are managed by ASI like Jain Caves Ellora, Rock-Cut Images Gwalior Fort. However, pilgrimage places like Osian Temple and Palitana in Gujarat are privately managed.

Rock Cut Images Gwalior Fort. Managed by ASI.  

6. So also older Buddhist monuments are managed by ASI for e.g. Ratnagiri Monastery in Odisha, Buddhist Caves Ellora, Ajanta Caves, Nalanda University Ruins and Sarnath. I do not know of the legal entity that manages Tawang Monastery.

Managed by ASI - Ajanta Caves.  

Bodh Gaya Temple-Journalist Sandhya Jain wrote, ““After independence, the Bihar Legislative Assembly passed the Bodhgaya Temple Act, which created the Bodhgaya Temple Management Committee, to take care of the temple and pilgrims, and ensure proper worship. The Committee comprised a Chairman and eight members nominated by the State Government, all of whom had to be Indians. In 1953, presiding Mahant Harihar Giri handed over the management to the then Vice President of India, Dr. Sarvapalli Radhakrishnan. Since then, the management committee has comprised five Hindus including the District Collector who is chairman, provided he is a Hindu, and four Buddhists.”

Briefly, about Management of Hindu Temples.

One, in five southern states temples are managed by State governments and temple income goes to state government. Private Temples in these states and elsewhere in India temples operate as Charitable Trust and governed by the Indian Trust Act 1882 (applicable to private trust) or state equivalent like the Bombay Charitable Trust Act 1950 i.e. applicable to Maharashtra and Gujarat.

Only when trusts register with the state level authority can they get authority to apply for under permission to issue certificates under Section 80G of the IT Act that enables donor to get tax-breaks for donations made. Accounts of a trust, when beyond tax-free limit, are required to be audited annually.

Management of a Temple in Tamil Nadu

From an earlier article, “Most southern states have a minister in-charge of Hindu religious and charitable endowments. So, how do the state governments manage Hindu temples today? Let us take Sri Dhandayuthapani Swamy Temple, Palani, Tamil Nadu as an example.

All hundi collections are deposited in the designated temple bank account. Of this, 14 per cent goes as administration fees, 4 per cent as audit fees (Section 92), 25-40 per cent as salaries and 1-2 per cent for prayers and other festival expenses. Between 4-10 per cent of the total collections go to the ‘Commissioner Common Good Fund’ (Section 97). Further, money is transferred to various popular schemes run by the government like free meals and marriages.

This way, 65-70 per cent of the temple income is used for non-temple or merely administrative purposes. Note that the Archakas who perform the prayers are paid meagre salaries, and sometimes nothing at all. Further temples, originally centres of learning, hardly use funds to run ved pathshalas and share knowledge about the Sanatan Dharma.

The bank account is in the name of the deity or the Devasthan. Since these temples are constituted under a State Act, their income is exempt from income tax under section 10 (23BBA) of the Income-Tax Act.” 4

Rahul Easwar on Management of Temples in Kerala

From an earlier article, “According to Rahul Easwar, President of Ayappa Dharma Sena, “Kerala has four Devaswom boards namely, Guruvayur, Malabar, Travancore and Cochin. Every board has nominees appointed by the government. When the Communists are in power, they appoint members from their own parties and one member from the coalition partner. When the Congress comes to power, they balance it between Nairs, Ezhavas and a third community based on vote bank.” So technically, the government has no say in the management of temples, but in effect, they control the temples through their nominees.” 

Charitable Trust  

1. What is a Trust?

“As per Section 2(13) MPT Act, 1950 Trust means an express or constructive trust for either a public religious or charitable purpose or both and includes a temple, math, a wakf, church, synagogue, agiary or other place of public religious workship, a dharmada or any other religious or charitable endowment and a society formed either for a religious or charitable purpose or for both and registered under the Society Registration Act, 1860. Section 3 of the Indian Trusts Act defines a trust as “an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by him for the benefit of another.” Source 2

“In certain states where there is no charity commissioner; the trust deed can be easily registered with the sub-registrar’s office.” 2

2. Wish to start a temple, here is process followed by a temple in Maharashtra

We worship the idols of Lords Ganapathy, Ayyappa and Subramanya in this temple. The temple is registered Trust in Maharashtra. We are registered with the Charity Commissioner of Maharashtra and have the exemption under Section 12A granted by Income Tax Authorities. We have an elected Management committee from whom six are designated as President- Vice President, Secretary- Joint Secretary, Treasurer and Joint Treasurer for easy conduct of day to day affairs. Management committee is elected for two year tenure at a time. We have internal auditors elected from the members. We have statutory Auditors appointed as per prescribed procedures and submit our accounts to Income tax Authorities as well as Charity Commissioner. ”

3. Registration requirements (Source here)

“Trust Deed Registration, PAN, TAN, RBI Approval - In case the beneficiary is a non-resident and GST Registration required in case trust is in business with an annual turnover in excess of Rs. 40 Lakhs.”

4. Filing of Income-Tax Return (Source here)

“Any Trust with a gross total income of more than the basic exemption limit is required to file income tax returns mandatorily form ITR-5 and some specific trusts are required to file the income tax return, irrespective of their total income. The annual return of income in form ITR-7 is required to be filed every year. Form 10B is to be furnished by a charitable or religious trust or institution that has been registered u/s 12A or who has submitted an application for registration by filing Form 10A.”

5. Audit of Accounts (Source here)

“Most private trusts are created for transferring benefits. Therefore, there will be income from that trust. So When the total income of a trust or institution is computed without giving effect to Sections 11 and 12 and exceeds the maximum amount not chargeable to income tax in any given financial year, the accounts for the year has to be audited by a CA. This requires, on or before the specified date referred to in Section 44AB, the report of such audit in Form 10B duly signed and verified by the CA. Due Date to file form 10B is 30th September.” 

6. Documents required for Trust Deed Registration (Source here)

“Trust deed on stamp paper, Application signed by all trustees, Two passport size photographs, Self-attested copy of PAN and ID proof, Signature of settler on all pages of trust deed, Proof of registered office address (Electricity Bill/Water bill etc), NOC from landowner with his identity proof.” And “Application to the Respective Charity Commission Office as per Jurisdiction (Schedule III)”. 2

7. Charitable Trust have to spend 85% of income in the same financial year

According to Taxman.com, “85 per cent of the income derived from property held under trust, including the amount received as voluntary contributions (other than voluntary contributions towards the corpus of the trust) in the previous year, has to be applied for such purposes.” Simply put, 85% has to be used for trust purposes. If not the shortfall is taxable.

Also read

1. How are Temple Affairs Managed in Left Front Kerala

2. FAQ on 1950 Trust Act i.e. applicable in Maharashtra and Gujarat - VG

3. Understanding compliance and Income tax filing of charitable trusts

4. How Hindu temples came under Government control

5. How Hindu Temples and Spiritual organizations can be Effectively MANAGED