Section 80G: donations and how to claim them

Section 80G lets you deduct donations made to approved funds and charities from your total income. The deduction is 100% or 50% of the eligible donation, depending on the fund. For some funds it is also limited to 10% of your adjusted gross total income. Cash donations above ₹2,000 to one donee are not allowed. In TaxCare's rules, 80G is an old-regime deduction only.

These are the rules for the tax year 2025-26, which is under the Income-tax Act, 1961. From the tax year 2026-27 the Income-tax Act, 2025 applies and renumbers its sections. TaxCare's rules for 2026-27 are provisional, so check the donation rules again when you file for that year.

The four kinds of donation

TaxCare sorts every donation into one of four groups, like the tables in the return:

Examples from the Income Tax Department's own 80G FAQs:

• Group A (100%, no limit): for example the National Defence Fund and the Prime Minister's National Relief Fund.
• Group B (50%, no limit): the Prime Minister's Drought Relief Fund.
• Group C (100%, with limit): donations to the Government or an approved body for promoting family planning, and a company's donations for sports infrastructure or sponsorship.
• Group D (50%, with limit): any approved fund or institution, the Government or a local authority for a charitable purpose, housing and town-planning authorities, and donations to renovate notified places of worship of historic importance. Most donations to ordinary charities and trusts fall here.

The donee's receipt or certificate shows which group applies, and the department says the donor must check the donee's details.

How the deduction is worked out

1. Take each donation. Count the part paid by a non-cash mode in full. Count cash only if your total cash to that donee is ₹2,000 or less.
2. Apply 100% or 50% according to the group.
3. Split the result: groups A and B (no limit) and groups C and D (with limit).
4. Apply the 10% qualifying limit to groups C and D. The limit is 10% of your adjusted gross total income, which is your gross total income less other deductions and special-rate income.
5. Add the unlimited groups to the capped groups.

The cash rule

If the total cash you gave to one donee is above ₹2,000, none of that donee's cash donations count, not just the excess. Pay by cheque, UPI, card or net banking instead, and keep the reference.

A worked example

You donate to a group D charity ₹40,000 by bank transfer. Your adjusted gross total income is ₹10,00,000.

• Eligible donation: ₹40,000.
• Deductible at 50%: ₹20,000.
• 10% of adjusted income: ₹1,00,000.
• ₹20,000 is below the limit, so you can deduct ₹20,000.

If you also gave ₹25,000 by bank to a group A fund, that is deductible in full at 100%, so the total 80G deduction is ₹45,000.

Documents you need

For each donation, keep:

• A receipt from the institution, with its name, address and PAN.
• The mode of payment. For a non-cash payment, the bank transaction reference and the IFSC code. The 2025-26 forms ask for these.
• The donation reference number (ARN) from the donee's receipt, where one is given.
• Your own PAN on the receipt.

The return asks for the donee's PAN, name and address and each amount. A donee that files the statement of donations (Form 10BD) issues donors a certificate of donation in Form 10BE, which carries its name, address, PAN and registration number. The department matches the deduction you claim with what the donee reported in Form 10BD, so ask for the certificate.

80GGA and 80GGC

Two related sections work differently.

• 80GGA (donations for scientific research or rural development). Cash above ₹2,000 is not deductible.
• 80GGC (contributions to a political party). By non-cash mode only, never cash, and within your gross total income.

What to remember

• Old regime only. If you choose the new regime, you do not get 80G. Compare both before you decide. See our guide on old vs new regime.
• Claim in the same return as the donation. If you forgot, a revised return may let you add it. See our guide on how to claim deductions missed by your employer.
• A donation is not the same as a payment for a service. Only approved funds and institutions qualify. The department asks donors to verify the donee, and its FAQs point to the list of exempted institutions on incometaxindia.gov.in. Donations made after a registration is cancelled or has expired do not qualify.
• Donations in kind do not qualify. Only money donations count.
• The part above the 10% limit cannot be carried forward to a later year.

How it appears in the return

ITR-1 and ITR-2 both carry an 80G schedule. TaxCare lists the donee details and amounts, applies the cash rule and the 10% limit, and shows the deduction in the old-regime computation.

How TaxCare helps

TaxCare asks for each donation's details, checks the cash limit, applies the right percentage and the 10% cap, and shows whether the old regime with 80G beats the new regime. It reminds you that the receipt and reference must be kept. For donees or funds you are unsure about, a Tax Expert can advise.

This guide gives general information and is not professional tax advice.