Most people have a tendency to blur the line between Religion and Spirituality, I too was one of those people in the beginning. Till now with all the reading and research that I have done to clear the fog in my head, I came up with things that I felt are the distinctions between the Two; however this is not intended to imply one over the other.
Religion is more of an organized system of beliefs and symbols. For anything to be a Religion is has to have certain rituals and practices that are designed and believed to bring one closer to God. Spirituality on the other hand is the quest for answers to ultimate questions, and it doesn’t lead to or have any specific practices. Spirituality is more of a mystery. It is this mystical entity that shapes souls, whereas Religion shapes history. Religion is very much rooted in words and cultures and is dogmatic. Spirituality however transcends reason, language and culture and is metaphorical in nature. Spirituality is focused more on individual growth whereas Religion focuses on establishing community. Religion is more behavioral based and outward where Spirituality is more emotion based and inner experienced.
Spirituality is more universalizing, while Religion is more in particularizing, as in one group from another. Finally Spirituality is transformative and it trancends ego, whereas Religion is translational and it consoles the ego. It emancipates and gives a sense of place and psychological security.