Deduction Under Section 80G of the Income Tax Act

Under Section 80G of the Income Tax Act, you can claim a tax deduction on donations made to eligible funds, trusts, NGOs, and charitable institutions. Each donation under 80G may qualify for a deduction of 50% or 100% of the donated amount, with or without an income-based qualifying limit, depending on which category the recipient organisation falls under.

This donation tax benefit is available to individuals, Hindu Undivided Families (HUFs), companies, firms, and other taxpayers, provided the donation is made to an approved institution and all required conditions are met.

Latest 2026 Update on Section 80G Deduction

Before you claim any Section 80G deduction, here is what you need to know under the current provisions:

• The Section 80G deduction is available only under the Old Tax Regime. If you have opted for the New Tax Regime, you cannot claim this deduction.
• Cash donations exceeding Rs. 2,000 are not eligible for deduction under Section 80G. For amounts above Rs. 2,000 cash donation limit, donate through a cheque, demand draft, UPI, net banking, or a debit/credit card.
• The Income Tax Department classifies eligible donations under Section 80G into four categories: 100% deduction without a qualifying limit, 50% deduction without a qualifying limit, 100% deduction subject to a qualifying limit, and 50% deduction subject to a qualifying limit.
• Organisations must hold a valid 80G registration. Donors should verify this before making a donation.

What Is Section 80G of the Income Tax Act?

Section 80G is a special provision in the Income Tax Act that allows taxpayers to claim a deduction on donations made to government-approved charitable institutions and relief funds. The deduction is available to all taxpayers, such as individuals, HUFs, firms, and companies, but only for donations to organisations with a valid 80G registration.

Section 80G’s primary goal is to encourage philanthropy and support NGOs and institutions that contribute to the public good.

Who Can Claim a Deduction Under Section 80G?

Taxpayers eligible under Section 80G include:

• Resident individuals
• Non-Resident Indians (NRIs)
• Hindu Undivided Families (HUFs)
• Companies or firms
• Partnership firms

To meet 80G eligibility, you must ensure:

• The donation is made to an institution with a valid 80G registration
• The payment is made through an eligible mode (cash donations exceeding Rs. 2,000 do not qualify)
• You hold the required donation receipt or Form 10BE as proof

Is Section 80G Available Under the New Tax Regime?

The Section 80G deduction is not available if you opt for the New Tax Regime. To claim this deduction, you must opt for the Old Tax Regime and satisfy the applicable conditions.

Old Tax Regime vs New Tax Regime for 80G

Tax Regime	Can You Claim an 80G Deduction?	Best For
Old Tax Regime	Yes, subject to the applicable conditions	Taxpayers claiming deductions and exemptions such as Section 80G, Section 80C, HRA, and others
New Tax Regime	No	Taxpayers who prefer lower tax slab rates without claiming most deductions and exemptions

Note: Your choice of tax regime should be based on your complete income profile, not Section 80G alone. Consult a tax adviser if you are unsure.

Under Section 80G Income Tax

Not all donations are eligible for a 100% deduction; some come with income-based limits. Section 80G classifies eligible donations into four main categories:

1. Donations with 100% Deduction (No Upper Limit)

These donations qualify for a full deduction with no income-based restriction.

Examples include:

• Prime Minister’s National Relief Fund
• National Defence Fund
• Swachh Bharat Kosh
• Clean Ganga Fund
• National Children’s Fund
• Army/Navy/Air Force Welfare Funds

2. Donations with 50% Deduction (No Upper Limit)

Here, you can claim 50% of the donated amount as a deduction, with no cap on income.

Examples include:

• Prime Minister’s Drought Relief Fund
• Jawaharlal Nehru Memorial Fund
• Indira Gandhi Memorial Trust
• Rajiv Gandhi Foundation

3. Donations with 100% Deduction (Subject to 10% of Adjusted Gross Total Income)

You can claim a full deduction up to 10% of your adjusted gross total income.

Examples include:

• Donations to promote family planning
• Contributions to the Indian Olympic Association

4. Donations with 50% Deduction (Subject to 10% of Adjusted Gross Total Income)

This is the most restricted category – only 50% of the donation, up to 10% of adjusted gross total income, can be claimed.

Examples include:

• Donations to local government bodies for general charitable purposes
• Public charitable trusts or approved NGOs
• Religious places notified by the government
• Minority welfare corporations

How to Calculate Deduction Under Section 80G

The 80G deduction calculation depends on the category your donation falls under. Here is a step-by-step method:

1. Identify the Donation Category: Check whether the recipient organisation falls under the 100% or 50% deduction category and whether a qualifying limit applies.
2. Check the Deduction Percentage: Determine whether the deduction is 100% or 50% of the donated amount.
3. Calculate 10% of the Adjusted Gross Total Income: If the donation falls under a category with a qualifying limit, compute 10% of your adjusted gross total income (i.e., gross total income minus long-term capital gains, short-term capital gains taxable under Section 111A, and deductions under Sections 80C to 80U, except Section 80G).
4. Compare the Donation with the Qualifying Limit: Take the lower of the actual donation amount and the 10% qualifying limit.
5. Apply the Deduction Percentage: Multiply the eligible amount by 50% or 100%, as applicable.

Section 80G Calculation Example

Example 1:

Particulars	Amount
Adjusted Gross Total Income	Rs. 6,00,000
Donation to 50% deduction category with 10% limit	Rs. 1,00,000
10% qualifying limit (10% of Rs. 6,00,000)	Rs. 60,000
Eligible donation (lower of Rs. 1,00,000 and Rs. 60,000)	Rs. 60,000
Deduction at 50% of Rs. 60,000	Rs. 30,000

Example 2:

If you donate Rs. 50,000 to the Prime Minister's National Relief Fund (100% deduction, no limit), you can claim the full Rs. 50,000 as a deduction under Section 80G.

Donations Eligible Under Section 80G

Any individual, HUF, firm, or company donating to a registered organisation with a valid 80G certification can claim this deduction.

Ensure the receipt includes the Section 80G registration number to validate your claim.

Documents Required to Claim Deduction Under Section 80G

To claim your 80G deduction, you’ll typically need:

• Donation receipt with the 80G registration number
• PAN of the donor
• Details of the recipient organisation (name, address, 80G status)
• Bank statement or payment proof
• Form 16A if TDS was deducted
• Self-declaration for cash donations
• Bank account details
• Accurate records of the donation amount, date, and payment mode

Keep these documents safely for accurate record-keeping and future income tax filings. Always follow the latest instructions issued by the Income Tax Department for proper compliance.

How to Make the Section 80G Deduction Claim

You can claim your donation under 80G while filing your income tax return. Include the relevant details in the ITR form's deduction section, the amount donated, and information about the recipient organisation.

Section 80G Tax Exemption

The tax benefits under Sec 80G of the Income Tax Act depend on:

• Nature of the donation (100% or 50%)
• Income-based qualifying limits
• Organisation’s eligibility and registration status

Donors must obtain a proper receipt and verify the organisation’s 80G approval before donating.

List of Donations Eligible for 100% Deduction Without Limit

• Prime Minister’s National Relief Fund
• National Defence Fund
• Clean Ganga Fund
• Swachh Bharat Kosh
• National Foundation for Communal Harmony
• Donations to universities or educational institutions of national eminence

How Do Deductions Under Section 80G Benefit Different Types of Taxpayers?

Whether you're an individual or a business, Section 80G deductions reduce your taxable income, lowering your overall tax liability.

Let us understand this with an example:

• D is a self-employed individual
• ABC Textiles Pvt. Ltd. is a company

Both Ms. D and ABC Textiles donate Rs. 80,000 each to an NGO eligible for a 50% deduction with a 10% income limit. Their total income for the financial year 2024-25 is Rs. 5,00,000 each. Both opt for the Old Tax Regime to claim the deduction under Section 80G.

Now, let’s understand how the donation reduces the total income for both taxpayers:

Particulars	Ms. D (Individual)	ABC Textiles Pvt. Ltd. (Company)
i) Gross total income	Rs. 5,00,000	Rs. 5,00,000
ii) Donation given to the NGO	Rs. 80,000	Rs. 80,000
iii) Eligible deduction (50% of donation)	Rs. 40,000	Rs. 40,000
iv) Max limit (10% of total income = Rs. 50,000)	Rs. 40,000 (within limit)	Rs. 40,000 (within limit)
v) Taxable income after deduction	Rs. 4,60,000	Rs. 4,60,000

Next, let’s understand the tax savings due to donations:

So, we see that:

• D, as an individual under slab-based taxation, saves Rs. 8,320 as the Rs. 40,000 deduction reduces her taxable income.
• ABC Textiles Pvt. Ltd., taxed at a flat 30%, saves Rs. 12,000 in tax due to the same Rs. 40,000 deduction.
• Though both donated the same amount, tax savings differ due to the difference in tax structure between individuals and companies.

This shows that the benefit from Section 80G varies based on your income type and tax rate, not just the donation amount.

Mode of Payment for Donations Under Section 80G

To claim a tax deduction under Section 80G, the mode of payment plays a critical role. Not all payment types are eligible, and adhering to the right methods ensures you receive the intended tax benefit.

Here are the key rules:

1. Cash Donations:

• Only cash donations up to Rs. 2,000 are eligible for deduction.
• Any amount above Rs. 2,000 paid in cash will not qualify under Section 80G.

2. For Donations Above Rs. 2,000, use one of the following:

• Cheque
• Demand Draft
• Digital payments (Net banking, UPI, credit/debit cards)

3. Donations Not Eligible Under 80G:

Contributions such as food, clothes, or medicines are not deductible.

Always use valid payment methods to ensure your donation is eligible under the Income Tax Act’s Section 80G.

What Details Should an 80G Donation Receipt Include?

A valid 80G receipt format (donation receipt) typically contains the following:

• Name of the donor
• Name of the donee (recipient organisation)
• PAN of the donee
• Address of the donee
• 80G registration number of the donee
• Donation amount
• Mode of payment
• Date of donation
• Receipt number

If any of these details are missing, your claim may be rejected during ITR processing. Always check the receipt carefully before filing.

Section 80G Validity and Renewal

Registration under the Income Tax Department is necessary for NGOs and charitable trusts to offer tax benefits to their donors.

Here are key points to keep in mind:

• Organisations get provisional registration (3 years)
• Must apply for permanent registration (valid for 5 years)
• Renewal is required every 5 years

Consideration for Section 8 Companies

Section 8 companies are not-for-profit companies registered under the Companies Act. They must renew their 80G registration to ensure donor eligibility for tax benefits from April 1, 2025.

Form 10BE and Donation Certificate Under Section 80G

If you are claiming the 80G deduction for the financial year, you may need a Form 10BE donation certificate from the donee institution. This is particularly relevant for donations where the recipient is required to report the donation to the Income Tax Department.

Key points:

• The donee institution generates Form 10BE and submits it to the Income Tax Department.
• The details in your ITR Schedule 80G must match the information reported by the donee.
• Discrepancies between the Form 10BE data and your ITR claim can result in the deduction being disallowed.
• Keep the Form 10BE and your donation receipt together as supporting documents.

If the donee has not issued a Form 10BE, contact the organisation directly before filing your return.

How to Claim Section 80G Deduction While Filing ITR

Here is how to claim the 80G deduction in the ITR step by step:

1. Opt for the Old Tax Regime Deductions: Section 80G deductions are not available under the New Tax Regime.
2. Collect the Donation Receipt: Ensure it contains all the required details, including the Section 80G approval number.
3. Obtain Form 10BE: Collect Form 10BE from the donee institution, where applicable.
4. Open Schedule 80G in the ITR Form: Enter all the required donation details.
5. Enter the Donee Details: Provide the name, PAN, address, and Section 80G approval number of the donee.
6. Enter the Donation and Eligible Deduction Amounts: Calculate the eligible deduction based on the applicable provisions under Section 80G.
7. Verify the Pre-filled Information: Where the portal has auto-populated details from Form 10BE, cross-check them with your donation receipt.
8. Retain All Supporting Documents: Keep the donation receipt, Form 10BE, and proof of payment as part of your tax records, generally for at least six years.

Details Required in Schedule 80G

Detail Required	What to Enter
Donee Name	Name of the eligible trust or fund
PAN of Donee	PAN as per the donation receipt or Form 10BE
Address of Donee	Full address of the recipient organisation
Donation Amount	Total amount paid through the eligible mode
Eligible Deduction Amount	Calculated based on category and qualifying limit
Section	Category under which the donation falls (100%/50%, with or without limit)

Note: PAN of the donee and the organisation's address are generally required to process the Section 80G claim in the ITR.

Section 80G vs 80GGA: Key Differences

If you make charitable donations, you may also come across Section 80GGA. Here is how the two provisions differ:

Feature	Section 80G	Section 80GGA
Purpose	Donations to charitable funds, trusts, NGOs, and approved institutions	Donations for scientific research or rural development
Who Can Claim	Individuals, HUFs, companies, firms, NRIs	All taxpayers except those with income or loss from a business or profession
Deduction	50% or 100% of the donation, subject to conditions	100% of the donation, provided it is not made in cash

If you are a salaried individual or have other income sources without a business component, you may be eligible for both Section 80G and Section 80GGA deductions, depending on the nature of your donation.

Conclusion

Understanding Section 80G of the Income Tax Act empowers you to support meaningful causes while also reducing your tax burden. Whether you're contributing to national relief funds or local charities, being aware of the 80G deduction limit, categories, and required documentation ensures your generosity is rewarded with tangible tax savings.

This understanding is also valuable when applying for financial products like a personal loan. Lenders assess factors such as income, repayment capacity, and overall financial credibility during the loan approval process. A well-maintained ITR with claimed deductions not only reflects responsible financial behaviour but can also enhance your disposable income, which can strengthen your loan eligibility.

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