Section 80G Deduction for Donations: Eligibility, Limits and Tax Benefits

Section 80G of the Income-tax Act, 1961 provides a deduction for qualifying monetary donations to specified funds, charitable institutions and certain other approved recipients. The amount depends on the recipient and applicable statutory limits.

What is Section 80G?

Under Section 80G, a taxpayer may reduce taxable income by the eligible portion of donations made to prescribed funds or qualifying charitable institutions. A deduction reduces taxable income; it is not a rupee-for-rupee tax credit. The provision is part of Chapter VI-A and is subject to the general restrictions on deductions.

Section 80G deduction rates and limits

Adjusted gross total income is generally gross total income reduced by applicable Chapter VI-A deductions other than Section 80G and other amounts excluded under the statutory computation, including certain specially taxed incomes. The precise calculation should follow the applicable law and return instructions.

Which donations qualify?

Examples of 100% deduction without the qualifying ceiling

• Prime Minister's National Relief Fund.
• National Defence Fund set up by the Central Government.
• PM CARES Fund, as provided under the applicable statutory provisions.
• National Children's Fund and other specifically listed funds, subject to their current statutory treatment.

Examples of 50% deduction without the qualifying ceiling

Some specifically listed funds and trusts may qualify at 50% without the 10% ceiling. Their treatment can change through amendments; confirm the exact recipient against the statute and official tax guidance rather than assuming all public funds have the same rate.

Donations subject to the 10% ceiling

Donations to eligible Section 80G-approved charitable institutions generally qualify for a 50% deduction subject to the qualifying limit. Certain contributions for specified purposes, such as qualifying government-supported family-planning programmes, may receive 100% deduction subject to the same limit. A donation to a government body or charitable institution is not automatically eligible: the exact recipient and purpose matter.

Eligibility and important legal conditions

1. Approved recipient: Check that the institution holds valid Section 80G approval for the relevant donation date, or that the fund is independently specified in the law.
2. Cash limit: A cash donation exceeding Rs. 2,000 is ineligible for deduction. Prefer bank transfer, UPI, cheque or other traceable non-cash payment.
3. Money only: Donations in kind, including food, clothing and goods, do not qualify under Section 80G.
4. No duplicate benefit: The same donation cannot be claimed again under another deduction provision.
5. Tax regime: Individual taxpayers ordinarily need the old tax regime to claim Section 80G; the default new regime disallows this deduction.
6. Eligible taxpayer: Subject to the law and regime, individuals, HUFs, companies and other taxpayers may claim qualifying donations.
7. Political contributions: Contributions to political parties are governed by separate provisions, such as Sections 80GGB and 80GGC, rather than being treated as ordinary Section 80G donations.

Donation receipt, Form 10BE and reporting

Keep the donation receipt showing the donor's name, recipient's legal name, address, PAN, registration or approval details, amount, date and payment mode. For donations to institutions subject to reporting, the recipient generally files Form 10BD and issues Form 10BE to donors. Match the certificate and details appearing in the tax return or information statement. Specified funds may have different documentation procedures.

When filing the return, report the donee's particulars, eligible donation amount and deduction category correctly. A donation receipt alone does not establish that a recipient is approved for every relevant year.

Illustrative calculation

Assume adjusted gross total income is Rs. 8,00,000 and a taxpayer donates Rs. 1,00,000 by bank transfer to an approved institution qualifying for a 50% deduction subject to the 10% limit. The qualifying ceiling is Rs. 80,000. The deduction is 50% of Rs. 80,000 = Rs. 40,000, not Rs. 50,000. This assumes no other donations competing for the same qualifying ceiling and that the taxpayer is eligible to claim the deduction.

Legal provisions and official resources

The principal legal reference for historical periods is Section 80G of the Income-tax Act, 1961, including its rules on specified donees, qualifying limits, approvals and payment methods. Section 80G(5D) contains the cash-payment restriction; Section 80G(5) deals with conditions for eligible institutions. The 2025 legislation governs periods beginning 1 April 2026, so consult its corresponding donation-deduction provision for those years.

• Income Tax Department: Income-tax Act and legislation
• Income Tax e-Filing Portal: official guidance and returns
• India Code: official central legislation
• Income Tax Department: tax services and resources

Frequently asked questions

Last reviewed: 10 October 2026. This article provides general information; the law, approval status and return instructions applicable to the relevant tax year determine the actual deduction.