Income Tax Deduction on Donation

Section 80G of the Income Tax Act, 1961 enables an assessee to claim deduction for donation made by him to certain organizations. This deduction is subject to certain conditions. The motive of Government of India behind introduction of 80G deduction is to encourage donation towards worthy causes. Under 80G, the amount donated to notified funds or institutions can be claimed as deduction at the time of filing income tax return. Only donations made to institutions registered under section 80G or to the funds prescribed therein can qualify as deduction.

Who is eligible for deduction u/s 80G?

Deduction is allowed to all the assessees (Resident or Non- Resident) who makes an eligible donation under section 80G to notified funds or institutions except for following two donations:

1. Deduction is allowed where assessee is a Resident –
In case of donation made to Clean Ganga Fund, set up by the Central Government, deduction is allowed where such assessee is a resident.

2. Deduction is allowed where assessee is a Company –
Any sum paid by the assessee, being a Company, in the previous year as donations to the Indian Olympic Association or to any other association or institution established in India, as the Central Government may specify in this behalf for –

(i) the development of infrastructure for sports and games; or

(ii) the sponsorship of sports and games, in India

How much is the deduction available?

• Deduction allowed shall be 100% or 50% of the amount donated if donation has been given to any of the below mentioned institutions or funds:

Sr. No.	Donations Eligible for Deduction	%age Deduction allowed
1	The Prime Minister’s National Relief Fund	100%
2	The Prime Minister’s Armenia Earthquake Relief Fund	100%
3	The Prime Minister’s Citizen Assistance And Relief in Emergency Situations Fund (PM CARES FUND)	100%
4	The National Foundation for Communal Harmony	100%
5	The National Defence Fund	100%
6	The National Children’s Fund	100%
7	The Africa Fund	100%
8	A University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf	100%
9	The Chief Minister’s Earthquake Relief Fund, Maharashtra	100%
10	The Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996	100%
11	Any fund set up by the State Government of Gujarat for providing relief to the victims of earthquake	100%
12	The Chief Minister’s Relief Fund	100%
13	The Lieutenant Governor’s Relief Fund in respect of any Union territory	100%
14	Zila Saksharta Samiti	100%
15	The National Blood Transfusion Council	100%
16	The State Blood Transfusion Council.	100%
17	The National Illness Assistance Fund	100%
18	The Army Central Welfare Fund	100%
19	The Air Force Central Welfare Fund	100%
20	The Indian Naval Benevolent Fund	100%
21	The National Sports Fund	100%
22	The National Cultural Fund	100%
23	The Fund for Technology Development and Application	100%
24	Any fund set up by a State Government to provide medical relief to the poor	100%
25	The National Trust for Welfare of Persons suffering with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities	100%
26	Swachh Bharat Kosh	100%
27	Clean Ganga Fund	100%
28	National Fund for Control of Drugs	100%
29	The Jawaharlal Nehru Memorial Fund	50%
30	The Indira Gandhi Memorial Trust	50%
31	The Rajiv Gandhi Foundation	50%
32	The Prime Minister’s Drought Relief Fund	50%

• Deduction allowed shall be 100% or 50% of the Qualifying amount if donation has been given to other institutions or funds notified under section 80G:

If the donation has been given to any other institution or fund notified under section 80G, deduction allowed shall be 50% of the qualifying amount.

However, deduction allowed shall be 100% of the qualifying amount if the donation has been given to Government/local authority/other notified institution for the purpose of promoting family planning.

The other institutions which may be notified under this section may be charitable organisation or social organisation or religious organisation or other similar organisation.

What is Qualifying Amount?

Qualifying Amount = 10% of the adjusted gross total income or the donation (except donation to the above mentioned 32 funds) given, whichever is less.

What is Adjusted gross total income?

Particulars	Amount
Gross Total Income	XXXX
Long term capital Gains (including LTCG u/s 112A)	(XXXX)
Short term capital Gains u/s 111A	(XXXX)
All Deduction under section 80C to 80U except section 80G	(XXXX)
Adjusted Gross Total Income	XXXX

Whether to donate in cash, kind or any other mode?

• No deduction is allowed under this section, if the donation is made in kind.
• Donation of any sum upto two thousand rupees can be paid in cash or any mode other than cash.
• Donation of any sum exceeding two thousand rupees has to be paid by any mode other than cash to claim deduction.

Certificate of Donation

The Donor will receive a Certificate of Donation from the fund or institution. The certificate would be there in Form No. 10BE containing the particulars of Donee, Donor and the donation made.

Details to be furnished while filing Income Tax Return

For claiming deduction u/s 80G, one need to submit following details in ITR:

• Name of Donee
• Address of Donee
• PAN Number of Donee
• Amount of Donation made in the relevant Financial Year

FAQs — Income Tax Deduction on Donation (Section 80G)

1. What is the tax deduction available on donations in India?
Under Section 80G of the Income-Tax Act, 1961, donors can claim a deduction for donations made to eligible charitable funds, institutions, or trusts, reducing their taxable income in the old tax regime.

2. Who can claim this deduction?
Any taxpayer (individual, HUF, company, firm, etc.) with taxable income can claim deduction under Section 80G, provided the donation is made to an approved and eligible donee institution.

3. Are all donations eligible for tax deduction?
No. A donation is eligible for deduction only if the recipient organization/Fund is specified and approved under Section 80G. Taxpayers are advised to verify the donee’s eligibility (and category) before claiming the deduction.

4. What are the categories of deduction under Section 80G?
Section 80G donations are grouped into four categories based on the deductible amount and qualifying limits:

• 100% deduction without limit – Full donation allowed with no cap
• 50% deduction without limit – 50% of donation allowed with no cap
• 100% deduction subject to qualifying limit — Full amount but capped at 10% of adjusted gross total income
• 50% deduction subject to qualifying limit — 50% of donation capped at 10% of adjusted gross total income

5. Can I claim a deduction for cash donations?
Cash donations are eligible only up to ₹2,000. If the donation amount exceeds ₹2,000, it must be made by non-cash modes (such as cheque, demand draft, bank transfer, UPI) to qualify for the deduction.

6. What documentation is required to claim the deduction?
To claim the deduction, you must obtain a Section 80G donation certificate (Form 10BE) from the donee. The details you report in your ITR must match the donee’s details submitted in Form 10BD filed with the tax authorities.

7. Is the donation receipt alone enough to claim deduction?
Earlier, a receipt was often accepted, but now — for eligible deductions — the donee must also file Form 10BD and issue a proper Form 10BE donation certificate. Ensure the certificate is properly furnished for your claim to be accepted.

8. Can I claim deductions under both Section 80G and any other tax benefit?
No. If a deduction is claimed under Section 80G, you cannot claim the same donation amount under any other deduction provision of the Income-Tax Act for the same or any other assessment year.

9. Does the donation deduction apply under the new tax regime?
No. Section 80G deductions are not available under the new tax regime (Section 115BAC). You can claim this deduction only if you opt for the old tax regime.

10. How do I calculate the “qualifying limit”?
To compute deductions subject to qualifying limits:

• Compute your adjusted total income (after other eligible deductions except 80G).
• Determine 10% of this adjusted total income — this is the qualifying limit for that donation category.
• Apply the deduction percentage (50% or 100%) based on the donee’s category, up to the qualifying limit.

11. What if the donee’s Section 80G status changes later?
If the donee loses its 80G approval after you make the donation, the deduction claimed may be disallowed, and you may have to revise your return and pay additional tax. Always confirm the active status before claiming. (Department alerts and taxpayer nudges on mismatches are increasingly common.)

12. What happens if there’s a mismatch in donation details?
The Income-Tax Department matches donation claims in your ITR with information the donee submits in Form 10BD. Mismatches may trigger scrutiny or notices asking you to correct your return.