The Haj Subsidy

Aside from domestic exemption, the Indian Government hassubsidisingdizing the travel expenses of Indian Haj Pilgrims; this is enforced through the Haj Committee Act of 1959. These contributions date back to the era of the British Raj. Through the form of discounted airfares on Air India flights, the Government takes care of all transportation costs from Mumbai to Jeddah. Throughout the last century, the Government has subsided more travel locations to destinations including Iraq, Saudi Arabia, Syria, Iran, and Jordan.

Many Muslims have negative opinions on the subsidisation. Maulana Mehmood Madani and Indian political and general secretary of the Muslim Organization Jamiat Ulema-e-Hind spoke out against the Government’s actions. “It is against the Shariat to be under any kind of obligation while undertaking Haj. According to the Quran, only those Muslims who can afford the expenses should perform Haj. It’s recommended only for adult, financially able and sane Muslims.”

Source: tazkiyahtours

Hindu Subsidies

The Indian Government also subsidises several Hindu pilgrimages.

The most prominent examples of this are the four Kumbh Melas.The central and State Governments spend over a thousand crores annually on the Melas, with several allegations of misuse of funds. Besides the yatras, various state governments have passed various subsidies over the years to the benefit of temples, spiritual gurus, rituals, yagnas, and welfare funds. Other pilgrimages attracting centre and state funds. These include the Kailash Manasarovar Yatra, the Amarnath yatra, the Mukhyamantri Teerth Darshan Yojana etc.

Source: kumbhmelatours

Tax Exemption

In 1961, the Indian Government passed the Income-tax Act, which exempts charitable and religious trusts from paying taxes. The trust must put forth 85% of income derived from their religious activities (including the trust’s objective), and the remaining balance can then be used in the following year. Donations made are also exempted from paying taxes under section 80G of the Income Tax Act.

Some religious organizations, such as the Tirumala Tirupati Devasthanams (TTD) Temple, have felt mixed emotions regarding the enforcement of this act. In 2008, the temple management owed five crores to the Tirupati Urban Development (TUDA) and to the Tirupati Municipal Corporation (TMC). Reports have noted that this not only led to chaotic relations between the TUDA and the TTD but has also impacted the developmental activities in Tirupati as its economy relies on the temple’s presence.

However, because the temple is a renowned religious institution, under the Income-tax Act of 1961 the board argued that their exemption from paying taxes was justified. According to officials from the TTD properties wing, “The TTD has been earning income only through the offerings made by millions of devotees across the world. The construction of guest houses and mutts in Tirumala was possible only because of donations. Why should we pay tax to the TUDA? In fact, none of the government bodies has taken up development activities in the past two decades in Tirupati.”

Source: imgix

Legal Aspects

Article 27 of the Indian Constitution states that “No person shall be compelled to pay any taxes, the proceeds of which are specifically appropriated in payment of expenses for the promotion or maintenance of any particular religion or religious denomination.”

In 2011’s Prafull Goradia v. The Union of India, the Supreme Court tackled the question of whether a Government grant funded by taxpayer money violates Article 27. The SC bench proclaimed that it would only amount to such a violation if a “substantial part of taxpayer money” is used to promote religious activity. It said: “In our opinion Article 27 would be violated if a s…