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Section 80G allows taxpayers to claim a deduction for donations made to eligible charitable institutions, relief funds, and approved trusts. Depending on the recipient organization, the deduction may be 50% or 100% of the donated amount, with or without a qualifying limit. Donations above ₹2,000 must be made through non-cash modes, and the deduction is generally available only under the old tax regime.
You can refer to the complete section mapping of Income Tax Act 1961 vs Income Tax Act 2025 here.
Recent changes to Section 80G aim to improve transparency and prevent misuse of tax benefits on donations. Here’s what’s new:
To claim a deduction under Section 80G of the Income Tax Act, you must now obtain Form 10BE from the charity or NGO you donated to. This certificate is generated only after the NGO files Form 10BD (Statement of Donations) with the Income Tax Department showing donor details like your name, PAN, address and amount donated. Without Form 10BE, your deduction claim may not be accepted during ITR processing.
The tax department matches the donation amount you claim in your Income Tax Return (ITR) with the details that the NGO has reported in Form 10BD and shown in Form 10BE. If the numbers don’t match, the deduction may be disallowed or your return may get flagged for review, because the department uses this system verification to prevent fake claims.
Donations made in cash above ₹2,000 are not eligible for deduction under Section 80G. To get the tax benefit, donations must be paid through non-cash methods such as cheque, bank transfer, UPI, net banking, debit/credit card, etc. This applies even if the NGO reports the donation in its Form 10BD.
If you choose the new tax regime under Section 115BAC while filing your ITR, you cannot claim deduction under Section 80G. The deduction is available only under the old tax regime. This means if you want the 80G benefit, you must opt for the old tax regime in your return.
Before you donate, it’s important to make sure the organisation is approved for 80G benefits. You can check this using the Income Tax Department’s “Exempted Institutions” list, which shows charities, trusts and funds that are eligible for Section 80G deductions. Only donations to these registered entities will qualify for tax deductions.
Section 80G of the Income Tax Act provides for a deduction for donations made to certain charitable institutions or funds. The deduction is available to individuals as well as companies.
80G deduction can be claimed by individuals, companies, firms, Hindu Undivided Family, NRIs, and other persons.
The deduction under section 80G can be claimed on the amount donated to eligible institutions or funds. The deduction can be claimed up to a maximum of 50% or 100% of the donated amount, depending on the institution or fund to which the donation under 80G has been made.
However, it is important to note that not all donations under 80G are eligible for deduction under section 80G. Only donations made to certain specified funds or institutions are eligible for deduction. It is, therefore, important to check whether the institution or fund to which the donation has been made is eligible for deduction under section 80G.
To claim the deduction under section 80G, the taxpayer must obtain a receipt or 80G deduction limit certificate from the institution or fund to which the donation has been made.
The receipt should contain the name and address and PAN no.of the institution or fund, the amount donated, and the registration number of the institution or fund under section 80G.
No. Section 80G deduction is generally available only if you opt for the old tax regime. Taxpayers choosing the default new tax regime under Section 115BAC cannot claim deduction under Section 80G.
However, you will not be eligible to claim the deduction if you have any income or loss from a profession or a business. A broad structure of this section is given below:
| Sub-section | Clause | Sub-clause | |
|---|---|---|---|
| 1 | explains how much deduction can one claims. It gives a calculation formula to calculate the total deduction: 1. If the donations include "special funds" (listed in sub- section 2): One gets 100% deduction on those special donations + 50% deduction on remaining donations 2. If the donations are only to "other eligible funds": one gets 50% deduction on total donations |
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| 2 | informs the donations that qualify for deduction. It contains a master list of ALL the funds/institutions eligible for deduction: | ||
| (a) | contains the main list with multiple sub-clauses: | ||
| (i) to (iiihm) | Specific government and national funds (National Defence Fund, PM Relief Fund, Clean Ganga Fund, etc.) - These get 100% deduction without limit | ||
| Memorial funds (Nehru, Indira Gandhi, Rajiv Gandhi funds) – These get 50% deduction without limit | |||
| (iv) | Other approved funds and institutions | ||
| (v) | Government/local authorities for charitable purposes | ||
| (vi) | Housing and urban development authorities | ||
| (via) | Special corporations under Section 10(26BB) | ||
| (vii) | Government/ approved bodies for family planning | ||
| (b) | Donations for renovation of notified religious places of historic/archaeological importance | ||
| (c) | Donations by companies for sports infrastructure and sponsorship | ||
| (d) | Donations for Gujarat earthquake relief (specific period only) | ||
| 4 | gives the maximum limit for certain donations. For donations under clauses (a)(iv), (a)(v), (a)(vi), (a)(via), (a)(vii), (b), and (c) – total deduction is capped at 10% of donor’s adjusted gross total income. Any amount beyond this 10% limit is ignored. | ||
| 5 | gives eligibility conditions for institutions. It enlists 9 conditions (clauses i to ix) that institutions must meet to be eligible under section 80G. These are:· Institution's income should be exempt under Sections 11, 12, or 10(23AA)/10(23C) | ||
Trust deed must not allow funds to be used for non-charitable purposes
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| (5A) | If you have claimed deduction under Section 80G for any amount, you cannot claim the same amount under any other section of the Income Tax Act i.e., One donation, one deduction only | ||
| (5D) | It gives cash donation limit. No deduction allowed for cash donations exceeding ₹2,000. Modes of payment accepted are cheque, draft, or electronic modes. | ||
| (5E) | Applications pending before the specified date will be treated as new applications under the updated rules. | ||
| Explanation 2A | Deduction claim will be verified based on information submitted by the donee institution registered u/s 80G(5) to the tax authorities. | ||
| Explanation 3 | Meaning of charitable purpose: Charitable purpose does NOT include activities that are wholly or substantially religious in nature | ||
| Explanation 4 | Sports associations specified by the government are deemed charitable institutions | ||
| Explanation 5 | Deduction is allowed only for monetary donations, not donations in kind | ||
Section 80G of the Indian Income Tax Act allows you to claim tax deductions on donations made to eligible charitable institutions. By donating, you can reduce your taxable income and, in turn, lower your total tax payable. Section 80G tax deduction can be claimed by any charitable trust, NGO, ot organization involved in charitable activities, including education and religious institutions. You can claim either a 50% or a 100% deduction for the donated amount depending on the institution to which you have contributed.
Both company and non-company can claim a deduction under Section 80G of the Income Tax Act for donations made to eligible charitable institutions or funds.
The following persons can claim deduction under section 80G -
It is important to note that only the donations made to prescribed funds qualify as a deduction. Also, this deduction is not available for those individuals who opt for the new regime.
To claim a deduction under Section 80G, the donation must be in the form of money and not goods or services. The deduction can only be claimed for cash, cheque, or electronic transfer donations.
In addition, it is important to note that donations made in cash exceeding Rs. 2,000 will not be eligible for the deduction under Section 80G. Donors should ensure that they receive a receipt for the donation. The receipt should specify the amount donated, the name and address of the charitable institution or fund, and the registration number of the institution or fund under Section 80G.
Donors should also check the eligibility and maximum 80G deduction limit for each institution or fund before donating. It is important to note that the deduction limit and eligibility criteria can vary depending on the institution or fund to which the donation has been made.
Donations made to eligible trusts and charities qualify for tax deductions under certain conditions. Under Section 80G, these donations fall into four categories:
To qualify for a tax deduction under Section 80G, donations must meet certain basic criteria. Key requirements include:
Prime Minister’s Drought Relief Fund.
Tax calculation or tax liability is computed on the net taxable income of the taxpayer. The net taxable income is calculated after subtracting all the deductions that a taxpayer is eligible for from his/her gross total income. This means that the deduction under Section 80G will be deducted from the gross total income. Gross income is the sum of income from all sources of income, such as salary, dividend income, capital gains, interest income, rental income, etc.
Now the question is how much amount of deductions can be claimed under Section 80G. This deduction ranges from 50% to 100% of the amount donated. Donations to certain institutions qualify for a full deduction of either 100% or 50% without any qualifying limit.
To claim the deductions under Section 80 G, one needs to provide the details of their donations in’ Schedule 80G” in the ITR form. Tables A, B, C, and D are included in the schedule. These tables each correspond to a different category of charitable institution.
As per the latest change, a new column has been added under ‘Table D’ of ITR forms where disclosure of the ARN (donation reference number) is required to be entered. This one is for those entities where a 50% deduction is allowed, subject to the qualifying limit.
Along with mentioning the information under ‘Schedule 80G’, it is important to separately mention the total amount of deduction claimed under Section 80G if the taxpayer is filling the ITR forms 2 and 3.
To claim the deduction under section 80G, you need to fill in the following details in the Income Tax Return -
These details are required to be mentioned in the various tables given in the ITR -
Table A - It is for the donations eligible for a 100% deduction without any qualifying limit.
Table B - It is for donations eligible for a 50% deduction without any qualifying limit.
Table C - It is for donations eligible for a 100% deduction with a qualifying limit.
Table D - It is for donations eligible for a 50% deduction with a qualifying limit.
As per Section 80G(1), 80G(2) and 80G(4) of the Act, donations fall into four categories based on deduction limits:
| Category | Deduction Amount | Maximum Limit |
|---|---|---|
| 100% without limit | Full donation amount | No limit |
| 50% without limit | 50% of donation amount | No limit |
| 100% with limit | Full donation amount | 10% of adjusted gross total income |
| 50% with limit | 50% of donation amount | 10% of adjusted gross total income |
No. Only donations made to specified trusts, charitable funds or institutions, which are specifically mentioned under section 80G(2)(a) of the Act and funds or institutions registered and approved under Section 80G by the Income Tax Department, are eligible for deduction. It is mandatory for donors to verify and confirm the relevant details of the trust, institution, or charitable funds (donee) to ensure its eligibility under Section 80G and to determine the correct category of deduction applicable.
The Income Tax Department verifies Section 80G deduction claims using the donation details reported by eligible charitable institutions. Organizations approved under Section 80G are required to file Form 10BD, which contains information about donations received during the financial year. Based on this filing, they issue Form 10BE, a donation certificate, to the donor.
When you claim a deduction under Section 80G in your Income Tax Return (ITR), the department may compare the amount claimed with the donation information reported by the institution in Form 10BD. Any mismatch between the donor's claim and the details reported by the donee organization may result in additional verification or queries from the tax department.
To support your claim, you should keep the following documents safely:
Before claiming a deduction, ensure that the institution has valid approval under Section 80G and that the donation details have been correctly reported. Maintaining proper documentation can help avoid disputes and ensure a smooth processing of your income tax return.
The term "adjusted gross total income" refers to the gross total income, which includes income from various sources before applying deductions under Chapter VI-A. It is calculated after reducing the following:
To claim tax deduction on donations under Section 80G, keep these documents ready while filing your ITR:
Form 10BE is the main proof of donation. It is issued by the NGO or trust after they report your donation to the Income Tax Department. Always ask the NGO for this form. Without Form 10BE, your 80G claim may not be allowed.
Keep the donation receipt issued by the NGO or trust. It should clearly mention:
You should also have proof of payment, such as:
Remember, cash donations above ₹2,000 are not eligible for 80G deduction.
If you submitted your donation details to your employer for TDS calculation, keep:
For individuals, the deduction under Section 80G can be claimed on the amount donated to eligible institutions or funds up to a maximum of 50% or 100% of the donated amount, depending on the institution or fund to which the donation has been made.
For companies, the deduction under Section 80G can be claimed on the amount donated to eligible institutions or funds up to a maximum of 50% or 100% of the donated amount. However, it is important to note that the deduction limit for companies is subject to certain conditions and restrictions.
Additionally, this deduction under Section 80G can only be claimed by taxpayers who have opted for the old tax regime.
Section 80G broadly categorizes donations under 2 categories. First, donations without any qualifying limit & second, donations with a qualifying limit.
These two categories further have sub-categories. You can refer to the diagram below for more clarity.
*Maximum limit is known as the qualifying amount.
To calculate the amount of deduction under 80G, follow these steps:
Taxpayers in India can claim deductions under Section 80G for eligible donations. Here are the key modes through which donations can be made:
Cheque: Donations made via cheque are eligible for Section 80G deductions limit.
Demand Draft: Contributions made through demand drafts also qualify for Section 80G benefits.
Cash (for donations below Rs 2,000): Cash donations are accepted for deductions if they are below Rs 2,000.
Note: In-kind contributions such as food, material, clothes, medicines, etc., and donations exceeding Rs 2,000 should not be in cash to qualify for Section 80G deductions limit.
Example: Mr. X, an individual, has income chargeable under the head salary of Rs.10,00,000 & a short-term capital gain of Rs.1,00,000. He makes the following investments & donations to save taxes.
| Investment in NSCs & Tax saving FDRs | Rs.150,000 |
| Contribution to the National Defence Fund | Rs.8,000 |
| Clean Ganga Fund | Rs.3,000 |
| National Illness Assistance Fund | Rs.7,000 |
| National Cultural Fund | Rs.15,000 |
| Paid to State Government for Family Planning | Rs.70,000 |
| Paid to Approved Charitable Institutions | Rs.60,000 |
Now, let’s see how Mr. X can claim deductions from various investments & donations made by him.
First of all, we will calculate Adjusted GTI as below:
| Income from salary - | 10,00,000 |
| Income from short-term Capital Gain | 1,00,000 |
| Gross Total Income | 11,00,000 |
| Less: short-term capital gain | -1,00,000 |
| Less: Investment in NSCs | -150,000 |
| Adjusted GTI | 8,50,000 |
As a next step, we will calculate the net qualifying Limit (i.e., 10% of INR 8,50,000) which comes to 85,000.
Further, we will classify the donations into two categories below:-
Without Qualifying Limit
| Donation Made to | Amt. |
|
8,000 3,000 7,000 15,000 |
| Total A (1+2+3+4) | 33,000 |
| With qualifying Limit | |
| Donation Made to | Amt. |
| (5) Paid to State Government for Family Planning (100% of 70,000) | 70,000 |
| (6) Paid to Approved Charitable Institution (50%of 60,000) | 30,000 |
| Total B (5+6) 1,00,000 (Restricted to 85,000 only) | |
| Hence, deduction u/s 80 G will be limited to 1,18,000 | |
Deduction for donations made to specified charitable institutions or funds is only available under the old tax regime. Taxpayers opting for the new tax regime cannot claim the deduction under section 80G.
The steps for claiming deduction under section 80G are as under: • Go to “Deductions under Chapter VI-A” in your ITR form. • Select Section 80G. • Enter the details of the donee, donation amount, and eligible deduction
Section 80GGA of the Income Tax Act, 1961, provides a significant tax benefit for taxpayers in India. It allows for a 100% deduction on donations made towards specific scientific research and rural development initiatives.
Here's a breakdown of key points about Section 80GGA:
Deduction Percentage: You can claim a deduction for the entire amount donated.
Payment Mode: Donations must be made through valid modes like cheques, drafts, or online transfers. Cash donations exceeding Rs. 2,000 are not eligible for deduction.
Who Can Claim: This deduction is available to all taxpayers except those with income from business or profession taxpayers opting for the new tax regime (Section 115BAC).
Eligible Donations:
If you're planning to claim tax benefits under Section 80G of the Income Tax Act, here are some key points to keep in mind:
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Yes, you can claim a deduction u/s 80G through your employer. For that, you will need a certificate from the employer stating that such a donation has been made from your salary.
No, you do not have to submit the receipt while filing an ITR. However, it is advised to keep it safe & handy so that it can be furnished in front of the Assessing Officer if required during the assessment.
The Income Tax Department issues no specific donation receipt format. The only requirement is to mention the trust name, address, registration number, PAN, donation amount in words and figures, date of donation, name of the donor, and mode of payment.
Also, the receipt should specify that the donation is eligible for deduction u/s 80G.
The donation receipt will be provided by the donee (Trust)
In this scenario, the deduction will be allowed based on a certificate issued by employers or DDO (Drawing and Disbursing Officer).
Yes, you claim a deduction on all types of income except donations, which are subject to the qualifying limit.
Yes, NRI can claim tax deduction for donations made to Indian NGO u/s 80G. Though the amount deposited should be in rupees, some trusts also accept the international currency. The policies differ from organization to organization.
The donations under section 80G can easily be categorized into these four categories:
The available Deductions = 100% of the amount donated
The available Deductions = 50% of the amount donated
The available Deductions = 100% of the amount donated but the maximum upto the prescribed ceiling
The available Deductions = 50% of the amount donated but, maximum upto the prescribed ceiling
Government-approved (registered) trusts/organizations are eligible for 80G deductions. You can easily check the registration of a trust/ organization through the Income Tax Website. Simply visit www.incometaxindia.gov.in & check for the trust/organization.
No. Donations made in kind, such as food, clothes, medicines, books, blankets, or other materials, do not qualify for deduction under Section 80G. Only monetary donations are eligible.
In case you wish to claim an income tax deduction benefit in respect of the amount you have donated to eligible institutions, you need to adhere to the following:
No deduction or income tax benefit shall be given for donations made in kind, such as donation of clothes, food, etc. No tax benefit for cash donations exceeding Rs 2000 shall be allowed to the taxpayer. The payment for a higher amount (exceeding Rs 2000) should be made through cheque, net banking, demand draft, or other banking channels.
Yes, the income tax deduction under section 80G can also be claimed by a person other than individuals. It is also allowed for
One of the most alluring points making this deduction an attractive tax-saving option is its availability to both Residents and Non-Residents.
There are some well-known trusts across India where donations made are eligible for deduction u/s 80G. We’ve enlisted a few names for you as an example.
| Trust | Sec 80G Benefit |
|---|---|
| Akshay Patra | 50% tax exemption |
| Cry.org | 50% tax exemption |
| Save The Children | 50% tax exemption |
| Give India | 50% tax exemption |
In case the NGO to which you have donated is eligible, then you can claim a tax benefit of 50% or 100% of the amount donated with or without a qualifying limit. But if the donation falls under the category subject to the qualifying limit, then the total deduction of such donations shall not cross 10% of adjusted gross total income.
Yes. Salaried individuals can claim deduction under Section 80G for eligible donations made to approved institutions, provided they opt for the old tax regime and satisfy the documentation requirements.
Form 10BE serves as the donation certificate issued by eligible institutions and helps validate the deduction claim. Taxpayers should obtain and preserve it as proof of donation.
A deduction claim is not automatically denied merely because it is not visible in AIS. However, taxpayers should maintain donation receipts, payment proof, and Form 10BE for verification.
Verify whether the organisation has a valid Section 80G approval or registration number and issues a proper donation receipt and Form 10BE.
