Key Takeaways
- Section 80G lets you claim a tax deduction on donations made to approved charitable institutions and government funds. The deduction is available only under the old tax regime.
- Deductions are either 100% or 50% of the donated amount, depending on the fund or institution.
- Some donations are subject to a qualifying limit of 10% of your adjusted gross total income (AGTI). Others have no upper limit.
- Cash donations above Rs 2,000 are not eligible. Donate via cheque, UPI, NEFT, RTGS, or bank transfer to qualify.
- You must obtain Form 10BE (donation certificate) from the institution to claim the deduction. The institution files Form 10BD with the Income Tax Department; Form 10BE is generated from that filing.
- AY 2026-27 ITR forms require the transaction reference number (UPI/IMPS/NEFT/RTGS) and the IFSC code of the bank through which the donation was routed.
- From Tax Year 2026-27 onwards, Section 133 of the Income Tax Act 2025 replaces Section 80G, with the same substantive rules but a restructured framework where charitable institutions are registered as RNPOs (Registered Non-Profit Organisations).
If you made donations to an approved charitable institution or government fund during FY 2025-26 and are filing your ITR under the old tax regime, Section 80G gives you a deduction that directly reduces your taxable income. The deduction can range from 50% to 100% of the donated amount, depending on who you donated to.
Despite being a well-known provision, 80G is frequently claimed incorrectly. Taxpayers miss the cash payment limit, confuse the four deduction categories, forget to obtain Form 10BE, or assume the deduction works under the new regime. This guide covers every rule, every category, and the exact steps to claim your deduction correctly for AY 2026-27.
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Who Can Claim Section 80G
Section 80G is available to all taxpayers who opt for the old tax regime:
- Individuals
- Hindu Undivided Families (HUFs)
- Companies
- Partnership firms and LLPs
- Any other person assessable to tax
This is broader than Section 80C, which is limited to individuals and HUFs. A private limited company that donates to an approved fund can claim 80G in its return.
Section 80G is NOT available under the new tax regime. If you file under Section 115BAC (the default regime for individuals from AY 2024-25 onwards), you cannot claim this deduction.
The Four Deduction Categories
Section 80G divides eligible donations into four categories based on two variables: the deduction percentage (100% or 50%) and whether a qualifying limit applies.
Category 1: 100% Deduction, No Qualifying Limit
You get a deduction equal to the full amount donated, with no cap tied to your income. Donations to the following qualify:
| Fund / Institution |
|---|
| National Defence Fund set up by the Central Government |
| Prime Minister's National Relief Fund |
| PM CARES Fund |
| National Foundation for Communal Harmony |
| Approved university or educational institution of national eminence |
| Zila Sainik Boards |
| National Illness Assistance Fund |
| National Blood Transfusion Council or State Blood Transfusion Councils |
| National Sports Fund set up by the Central Government |
| National Cultural Fund set up by the Central Government |
| Fund for Technology Development and Application |
| National Trust for Welfare of Persons with Autism, Cerebral Palsy, etc. |
| Swachh Bharat Kosh |
| Clean Ganga Fund |
| National Fund for Control of Drug Abuse |
| Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund |
Category 2: 50% Deduction, No Qualifying Limit
You get a deduction equal to 50% of the donated amount, with no cap tied to your income.
| Fund / Institution |
|---|
| Prime Minister's Drought Relief Fund |
| Jawaharlal Nehru Memorial Fund |
| Indira Gandhi Memorial Trust |
| Rajiv Gandhi Foundation |
Category 3: 100% Deduction, Subject to Qualifying Limit
You get a deduction equal to 100% of the donated amount, but the total deduction under this category (and Category 4 combined) cannot exceed 10% of your adjusted gross total income.
| Fund / Institution |
|---|
| Donations to the Government or any approved local authority, institution, or association for the purpose of promoting family planning |
| Donations by a company to the Indian Olympic Association or any other notified association or institution established for the development of sports and games in India |
Category 4: 50% Deduction, Subject to Qualifying Limit
You get a deduction equal to 50% of the donated amount, subject to the same 10% qualifying limit (combined with Category 3).
| Fund / Institution |
|---|
| Donations to the Government or any local authority for any charitable purpose other than family planning |
| Any authority constituted for housing accommodation or planning, development, or improvement of cities, towns, and villages |
| Any corporation established by the Central or State Government for promoting interests of members of a minority community |
| Donations to any approved institution or fund for charitable purposes (this covers most NGOs and trusts with 80G registration) |
| Donations for repairs or renovation of any notified temple, mosque, gurdwara, church, or other place of worship |
Most donations by individual taxpayers fall into Category 4. When you donate to a registered NGO, a temple renovation fund, or a local government charitable initiative, you typically get a 50% deduction subject to the qualifying limit.
How the Qualifying Limit Works
For Categories 3 and 4, the aggregate deduction cannot exceed 10% of your adjusted gross total income (AGTI).
Step 1: Calculate Adjusted Gross Total Income
Start with your Gross Total Income (the sum of income under all five heads before Chapter VI-A deductions) and subtract:
- Long-term capital gains (LTCG)
- Short-term capital gains taxable under Section 111A (equity shares and equity mutual funds)
- Income taxable at special rates under Sections 115A to 115D
- All deductions under Chapter VI-A except Section 80G itself
The result is your Adjusted Gross Total Income.
Step 2: Calculate the Qualifying Limit
Qualifying Limit = 10% of Adjusted Gross Total Income
Step 3: Apply the Limit
Add up all donations under Categories 3 and 4. If the total exceeds the qualifying limit, cap it at the qualifying limit. Then apply the deduction percentage (100% for Category 3, 50% for Category 4).
Worked Example
Suppose your gross total income is Rs 12,00,000. After subtracting LTCG of Rs 1,00,000 and 80C deduction of Rs 1,50,000, your AGTI is Rs 9,50,000.
- Qualifying Limit = 10% of Rs 9,50,000 = Rs 95,000
- You donated Rs 50,000 to PM CARES (Category 1, no limit) and Rs 1,20,000 to an approved NGO (Category 4, 50% with qualifying limit).
For the NGO donation: the actual donation is Rs 1,20,000, but the qualifying limit is Rs 95,000. So the eligible amount is capped at Rs 95,000. The deduction under Category 4 is 50% of Rs 95,000 = Rs 47,500.
For PM CARES: 100% of Rs 50,000 = Rs 50,000 (no limit applies).
Total 80G deduction: Rs 97,500.
Cash Donation Rules
The Income Tax Act imposes a strict rule: donations made in cash exceeding Rs 2,000 are not eligible for deduction under Section 80G.
This means:
- Cash donations up to Rs 2,000 per institution per transaction are eligible.
- Cash donations above Rs 2,000, even to a fully approved fund, get zero deduction.
- Donations via cheque, demand draft, UPI, NEFT, RTGS, IMPS, debit card, credit card, or net banking are eligible regardless of amount.
If you regularly donate to a temple, trust, or NGO, always use a digital payment method and keep the receipt.
Donations That Do NOT Qualify Under 80G
Not every donation is tax-deductible. The following are explicitly excluded:
- Donations to foreign trusts or institutions (unless specifically notified by the Government of India)
- Donations to political parties (these are covered under Sections 80GGB and 80GGC, not 80G)
- Donations in kind (clothes, food, medicines, electronics). Only monetary donations qualify.
- Donations to institutions that do not hold a valid 80G registration (check the IT Department's "Exempted Institutions" search on incometax.gov.in)
- Cash donations exceeding Rs 2,000
Form 10BE: The Mandatory Donation Certificate
Starting AY 2022-23, the Income Tax Department introduced a verification mechanism for 80G claims:
-
Form 10BD (Statement of Donations): Every institution with 80G registration must file this form with the Income Tax Department, listing every donor, their PAN, and the amount received. The due date for FY 2025-26 is 31 May 2026.
-
Form 10BE (Certificate of Donation): After the institution files Form 10BD, the department generates Form 10BE for each donor. This certificate contains the institution's name, 80G registration number, PAN, the donor's details, and the donation amount.
Why Form 10BE Matters
The department cross-verifies your 80G claim in your ITR against Form 10BD filed by the institution. If the institution has not reported your donation, or if the amounts do not match, your deduction may be disallowed during processing or flagged for scrutiny.
How to Get Form 10BE
- Ask the institution for it directly (many NGOs email it after filing Form 10BD).
- Download it from the Income Tax e-filing portal: e-File > Income Tax Forms > View Filed Forms > Download 10BE PDFs. It becomes available approximately 24 hours after the institution files Form 10BD.
Penalty for Institutions
If an institution fails to file Form 10BD, it faces a penalty of Rs 200 per day of default under Section 234G, plus a penalty between Rs 10,000 and Rs 1,00,000 under Section 271K.
How to Claim 80G in Your ITR for AY 2026-27
Step 1: Collect Documents
- Form 10BE for each donation
- Payment proof (UPI receipt, bank statement, cheque image)
- Note the institution's PAN, 80G registration number, and address
Step 2: Fill Schedule 80G in Your ITR
The ITR forms (ITR-1 through ITR-7) include Schedule 80G with four sections corresponding to the four categories described above:
- Section A: Donations entitled to 100% deduction without qualifying limit
- Section B: Donations entitled to 50% deduction without qualifying limit
- Section C: Donations entitled to 100% deduction subject to qualifying limit
- Section D: Donations entitled to 50% deduction subject to qualifying limit
For each donation, you must enter:
| Field | What to Enter |
|---|---|
| Name of donee | Full name of the institution |
| PAN of donee | PAN of the institution |
| Address of donee | Registered address |
| City, State, PIN | As on the receipt/Form 10BE |
| Amount of donation | The total amount you donated |
| Mode of payment | Cash / Cheque / Electronic (UPI, NEFT, etc.) |
| Transaction reference number | UPI reference, IMPS reference, NEFT UTR, or cheque number |
| IFSC code | Bank IFSC through which the donation was routed |
New for AY 2026-27
The ITR forms for AY 2026-27 require the transaction reference number (for UPI, IMPS, NEFT, RTGS payments) and the IFSC code of the routing bank. This is a new disclosure requirement. Keep your payment confirmations saved.
Step 3: Verify Against Form 10BE
Before submitting your ITR, verify that the amount you have entered matches the amount on your Form 10BE. Mismatches will trigger automated notices from the CPC.
Section 80G and the New Tax Regime
Section 80G is a Chapter VI-A deduction. Under the new tax regime (Section 115BAC), most Chapter VI-A deductions are not available. The only exceptions are Sections 80CCD(2), 80CCH, and 80JJAA.
If you have made significant donations and want the 80G deduction, you must opt for the old tax regime.
For salaried individuals, the choice between old and new regime is made at the time of filing the ITR for AY 2026-27 (this is the last year under the Income Tax Act 1961). For business owners, the choice has more permanent implications under Section 115BAC(6).
If your combined Chapter VI-A deductions (80C + 80D + 80G + others) plus HRA exemption exceed the benefit of the higher basic exemption and standard deduction under the new regime, the old regime saves you more tax. Run the numbers before deciding.
Transition to Income Tax Act 2025: Section 133
The Income Tax Act 2025 came into effect on April 1, 2026. From Tax Year 2026-27 (the first tax year under the new Act), Section 80G is replaced by Section 133 of the Income Tax Act 2025.
What Changes
- Section number: 80G becomes Section 133. The substantive deduction rules (100%/50%, qualifying limit, cash restriction) remain the same.
- RNPO framework: Charitable institutions that previously held 80G registration must now be registered as Registered Non-Profit Organisations (RNPOs) under Section 332 of the 2025 Act. The 80G donor-deduction approval is now governed by Section 354.
- Terminology: "Previous year" and "assessment year" are replaced by "tax year". The deduction for donations made during Tax Year 2026-27 will be claimed in the return for Tax Year 2026-27 itself.
What Does NOT Change
- The four deduction categories (100%/50%, with/without qualifying limit) remain identical.
- The Rs 2,000 cash donation limit remains.
- Form 10BD and Form 10BE continue as the verification mechanism.
- The 10% qualifying limit on adjusted gross total income is unchanged.
For AY 2026-27 (the year you are filing now), you are still using the old Act's Section 80G. Section 133 applies from Tax Year 2026-27 (income earned from April 1, 2026).
Common Mistakes to Avoid
1. Claiming 80G under the new tax regime. The deduction will be disallowed. If you have already opted for the new regime and want to switch, you can do so while filing your return for AY 2026-27.
2. Donating in cash above Rs 2,000. Even if the institution is fully approved, the deduction is zero for cash donations above this limit.
3. Not verifying 80G registration. Before donating, check if the institution has a valid 80G registration on the Income Tax portal (Exempted Institutions search). Expired or revoked registrations mean your deduction will be rejected.
4. Ignoring the qualifying limit. Donating Rs 5 lakh to an NGO does not mean you get a Rs 2.5 lakh deduction. If your AGTI is Rs 10 lakh, the qualifying limit is Rs 1 lakh, and the deduction is only Rs 50,000 (50% of Rs 1 lakh).
5. Not obtaining Form 10BE. Without Form 10BE, the CPC will not process your deduction. Follow up with the institution before you file.
6. Claiming donations in kind. Clothes, food, or supplies donated to an NGO are not eligible. Only money counts under 80G.
Frequently Asked Questions
Can I claim 80G if I donate to a foreign charity?
No. Section 80G covers only domestic funds and institutions approved by the Indian Income Tax authorities. Donations to foreign charities are not deductible unless the Government of India has specifically notified them.
Is there an overall cap on the 80G deduction?
For Categories 1 and 2 (no qualifying limit), there is no cap. For Categories 3 and 4, the combined deduction is limited to 10% of adjusted gross total income.
Can I claim both 80C and 80G in the same return?
Yes. They are independent deductions under Chapter VI-A. You can claim Rs 1.5 lakh under 80C and your eligible 80G deduction in the same return, as long as you are under the old regime.
What if the NGO has not filed Form 10BD yet?
The due date for Form 10BD for FY 2025-26 is 31 May 2026. If the NGO has not filed it by the time you file your ITR, your Form 10BE will not be available, and the CPC may flag a mismatch. Contact the NGO and request them to file before you submit your return.
Do CSR donations qualify under 80G?
No. CSR expenditure mandated under Section 135 of the Companies Act 2013 is not eligible for deduction under Section 80G. The Income Tax Act explicitly excludes CSR spend from 80G claims.
Can I claim 80G on donations made to a political party?
No. Donations to political parties are covered under Section 80GGB (for companies) and Section 80GGC (for individuals and others). These are separate provisions with different rules.
Section 80G references in this guide are based on the Income Tax Act 1961 as applicable for AY 2026-27 (FY 2025-26). For Tax Year 2026-27 onwards, the equivalent provision is Section 133 of the Income Tax Act 2025. Rates, limits, and rules have been verified against the Income Tax Department FAQs on Section 80G (December 2025 release), ClearTax, Tax2win, and BajajFinserv. Always verify the 80G registration status of any institution on incometax.gov.in before making a donation.
