George Harrison learned sitar with Ravi Shankar (R)
Dayaram Das, head of the Calcutta chapter of the International Society of Krishna Consciousness (Iskon), said the garden would be laid in Mayapur, some 100 km (60 miles) north of Calcutta.
Harrison, who died from lung cancer on 29 November at the age of 58, was cremated in a cardboard coffin hours after his death, in keeping with his adopted Eastern faith.
"We are going to set up the George Harrison Garden at Mayapur to commemorate his contribution in spreading the messages of Lord Krishna through his music," said Mr Das.
Sitar
The Beatles' interest in Eastern mysticism and music was largely driven by Harrison, who discovered the Indian string instrument, the sitar, on the set of the Beatles' second film, Help, in 1965.
Soon after, the group recorded the song Norwegian Wood - becoming the first western rock band to use the sitar and herald the short lived "raga-rock" genre.
In 1966, after the Beatles had stopped touring, Harrison came to India to study the sitar with Ravi Shankar.
And, with the other Beatles, he communed with the Maharishi Mahesh Yogi, in the Himalayan town of Rishikesh, in 1968.
After becoming a Vaishnavite, Harrison often referred to his faith in his songs.
He incorporated into his biggest solo hit, My Sweet Lord, a chant to Hare Krishna, Hinduism's most revered god.
He later recorded other Hare Krishna chants for use in Iskon temples around the world.
Harrison was also a lover of botany and an ardent horticulturist.