Giving to a good cause is always rewarding and has a tax benefit, too. Under the 80G deduction, you can claim tax relief on donations to approved charitable institutions. But there are specific rules to follow and documents to keep ready.
From knowing the right documents to understanding the 80G deduction limit, this guide gives a closer look at all the details. So, let’s begin with it right away!
What is Section 80G?
If you’ve donated to a registered charitable trust or a government-approved relief fund, you might be eligible for an 80G tax exemption claim. It comes under Income Tax Act and is commonly used by tax payers who are frequently donating.
However, not every donation qualifies it and the amount you can claim depends on which organisation you are donating to. Some charities allow a 100% deduction, others offer 50%, and a few have limits based on 10% of your gross total income. Also, if you paid in cash, only amounts up to ₹2,000 are accepted. So, anything above that should be paid by cheque, draft, or UPI.
To support your claim, make sure you have the required details: the name, PAN, and address of the donee organisation, along with the donation amount and payment mode. Don’t forget to collect your Form 10BE. It is the certificate issued by the organisation to confirm your donation, and it must reach you by May 31st following the financial year of the donation.
To make your claim count, you’ll need a valid receipt with the organisation’s PAN, name, and 80G registration number. The 80G tax benefit can turn your kindness into savings.
Eligible donations under Section 80G
Not all donations are treated the same when it comes to claiming an 80G deduction. The tax break you get will depend on which trust your money is going to and its amount. Let’s walk you through the types of contributions you can make to get this tax benefit.
1. 100% deduction: No upper limit
Some contributions come with a full deduction and no limit on the amount. Below are the donations eligible for 100% tax deduction with zero upper limit as amended by Finance Act 2025:
- PM CARES Fund
- Institution of National Eminence (with proper approval)
- Swachh Bharat Kosh (not applicable if counted as CSR under Companies Act)
- National Sports Development Fund
- Zila Saksharta Samiti (works for rural literacy)
- National Trust for the Welfare of Persons with Disabilities
- National Defence Fund
- Fund for Technology Development and Application
- Clean Ganga Fund (for individuals in India, CSR funds not allowed)
- Prime Minister’s National Relief Fund (PMNRF)
- National Cultural Fund
- Funds for Armed Forces Welfare like Air Force, Army, and Indian Naval Benevolent Fund
2. 50% deduction: No upper limit
These donations qualify for a 50% deduction, again without any limit on how much you contribute:
- Jawaharlal Nehru Memorial Fund
- Approved charitable institutions (registered under Section 12A, 12AA or 12AB)
- Rajiv Gandhi Foundation
- Indira Gandhi Memorial Trust
- Prime Minister’s Drought Relief Fund
3. 100% deduction: 10% of gross total income limit
You can still claim a 100% deduction for these, but only up to 10% of your gross total income. Only donations up to 10% of your adjusted gross total income qualify for tax deduction under Section 80G.
Any amount beyond this cap won’t be considered. The 10% limit is calculated after reducing your gross income by deductions claimed under Sections 80C to 80U (excluding 80G) and incomes taxed at special rates such as capital gains:
- Temples, churches, gurdwaras, mosques etc., specifically notified for renovation or repair
- Municipal corporations or state/local governments (for public charity except family planning)
- Corporations focusing on housing or urban development
- Approved institutions working for family planning programs
4. 50% deduction: 10% of gross total income limit
These donations qualify for 50% deduction and only up to 10% of your gross total income:
- Any other charitable institution or trust approved under the Income Tax Act but not listed in other deductions.
Also read: Types of ITR Forms in India: Which one should you use?
Conditions for claiming deduction
Find out the conditions your donation must meet to help you get 80G tax exemption.
1. Who should you donate to
The contribution must be made to funds or institutions approved under Section 80G(2), like those listed above.
2. ₹2,000 limit on cash donations
Cash over ₹2,000 doesn’t fall under 80G. Anything above ₹2,000 must be donated via banking channels, like UPI, net banking, cheque, or even a debit/credit card.
3. A proper 80G donation receipt
You can’t claim deduction without a proper 80G donation receipt from the organisation. Make sure it includes:
- Address and name of the organisation
- Their PAN
- Donation amount and date
- Unique 80G acknowledgment number, if issued
The Income Tax Department requires every manual donation certificate to mention a unique pre-acknowledgment number. This number helps donors claim 80G tax deductions and makes sure the donation is officially recorded.
4. Institutions must have 80G certificate copy
If you donated to a non-government NGO, school, or charitable trust, confirm that it’s officially registered under Section 80G(5). If you’re unsure about the eligibility of your donation under Section 80G, request a copy of the organisation’s valid 80G certificate for your records.
Also read: Enabling EMI Options on Your Credit Card
How to claim deduction under Section 80G?
Here’s a breakdown to make claim the 80G tax exemption more of a smart tax move:
1. Institution must be approved under Section 80G
The organisation must have a valid approval under Section 80G.
2. Keep proof of donation
Two things you need to keep ready are as follows:
- A receipt from the donee with the 80G details.
- Get a stamped receipt with the trust’s name, address, PAN, your name, and the donation amount written in words and figures.
- A non-cash payment slip like a bank transfer or UPI screenshot if the amount crosses ₹2,000.
- Check that the receipt states the trust’s 80G registration number and its validity period; the registration must be active on the donation date.
3. Claim it while filing ITR
Mention the donation under the ‘Deductions’ section and look for Section 80G when you file ITR. Key details like the donee’s PAN, donation amount, and receipt number are a must.
4. Special forms required
- For a 100% deduction, collect Form 58, which lists the project’s cost, the actual amount spent, and the amount approved.
- Just report it in your ITR-1, ITR-2, or whichever ITR you use.
Also read: Direct vs Indirect Tax: What Sets Them Apart
Section 80GGA
You can help for rural development or scientific research and even save taxes with Section 80GGA. It gives 100% tax deduction on eligible donations. It is perfect for salaried individuals or anyone without business income.
Who can claim this deduction
- This deduction is available only to individuals not earning income from business or profession.
- It is most suitable for salaried employees or pensioners.
- The donation must be made to a government-approved institution to qualify for the benefit.
Eligible donations you can claim
You can claim a deduction under Section 80GGA for contributions made to:
- Scientific research institutions approved under Section 35
- NGOs or associations engaged in rural development projects
- Government-notified funds such as the Afforestation Fund or National Poverty Eradication Fund
- Training centres that provide rural development programs
- Projects or schemes approved under Section 35AC
Key rules and required documents
- Cash donations are eligible for deduction only up to ₹10,000
- For any amount above ₹10,000, the payment must be made by cheque, bank draft, or digital transfer
- Donors must collect Form 58A from the institution to claim the tax deduction
- Only one deduction can be claimed per assessment year for the same donation.
Conclusion
Claiming deductions under Section 80G requires you to donate to an eligible organisation, get your receipt and report it correctly in your ITR. With the right documents in hand, you can also save on taxes. It’s a small step that brings financial relief while supporting meaningful causes.
FAQs
To claim your 80G tax exemption, get two things: your donation receipt and Form 10BE from the trust or NGO. These include all the required details like your name, donated amount, the donee’s PAN, and registration number. When you file your ITR, just enter these under the “Deductions” section. It can potentially save you a decent amount on your taxable income.
Proof is key to getting your 80G tax benefit. So, you must ask the NGO or trust for a proper stamped receipt. It will include your name, address, donated amount, PAN number of the institution, and their 80G registration number. Also requesting Form 10BE is also mandatory nowadays. These documents are needed when filing your ITR. Without them, your deduction claim can be denied.
To claim the deduction, you must provide the following in your income tax return:
Name of the donee (organisation/charity)
PAN of the donee
Address of the donee
Amount of contribution (with a clear breakup of cash and other payment modes)
Amount eligible for deduction under Section 80G
Section 80G tax exemption is a tax-saving provision for people who contribute to social causes. It allows you to lower your taxable income as per the donations you’ve made to approved organisations. So, it’s a way to give back to society and get rewarded for it. You help someone out and in return, you legally bring down your tax outgo.
