In our report titled, ‘Temple Debenture issue to raise $500,0000’ (Indian Newslink, May 1, 2011), we had said that the “Debentures would be non-interest bearing but donors can claim up to 33% refund from Inland Revenue.”
Shri Shirdi Saibaba Sansthan of New Zealand Inc Committee Member and former President Sam Swaminathan said the debentures are not donations but are redeemable for cash and hence do not attract any tax incentives.
“These debentures are in the nature of interest free-loan documents and carry no security. This means no interest will be paid on these loans and these are repayable after a period as mentioned in the debenture document.
“These are not in the nature of donations and devotees subscribing to the debentures will get a ‘debenture document,’ which will be an acknowledgement of receipt of loan by the Sansthan.
Those subscribing to the Debenture will not be able to claim tax rebate from Inland Revenue Department (IRD), he added.
Mr Swaminathan said that if a subscriber wished to surrender the debenture (after a certain time) and convert this into a donation to the Sansthan, then that person would be given a proper donation receipt, which can be used to claim rebate from IRD, depending on the prevailing rules at that time.
On a related note, the Sansthan is also seeking donations from members and other devotees of Shirdi Saibaba to complete its ambitious Temple Project, which is estimated to cost about $5 million.
Secretary Hameed Mohammed said donations can be made through automatic payments weekly, fortnightly or monthly to the Sansthan’s Bank Account at the ASB Bank (Account Number 12-3137-0047268-00). The Swift Code for overseas remittances is ASBBNZ2A – ASB Bank, Two Double Seven Branch, New Market, Auckland.
He said the Sansthan has opened an account at the Auckland branch of Bank of Baroda to facilitate donations from India and other countries as well (Account Number 021-2730-022170-001 Swift Code: BARBNZ2A).
“People from India can remit up to $US 200,000 under the Liberalised Remittance Scheme through Bank of Baroda in India. They should fill an application (A2) form, submit PAN Card details and contact any branch of Bank of Baroda for details including terms and conditions,” he said.
