Claiming Tax Deductions for Donations Under Section 80G and Reporting Them Accurately in Your ITR
- Bhavika Rajput
- 13 hours ago
- 9 min read
Section 80G of the Income Tax Act offers taxpayers a smart way to contribute to nation-building while reducing taxable income. This provision allows deductions for donations made to registered charitable institutions and government funds. However, eligibility depends on the nature of the donation, mode of payment, and documentation—especially after the mandatory introduction of Form 10BE. Without accurate reporting in the ITR, claims can be denied. Let us understand how to navigate the Section 80G deduction process, avoid mistakes, and report your contributions correctly.
Table of Contents
How to Claim Tax Deductions Under Section 80G in ITR
To claim deductions under Section 80G, donations must be made to approved institutions with a valid 80G registration. The deduction is then reported under Chapter VI-A in the ITR. The ITR form will ask for:
Name and address of the donee
PAN and registration number of the trust
Donation amount
Deduction type (100% or 50%, with/without limit)
Ensure that donation details align with the Form 10BE issued by the institution. Discrepancies may lead to rejection or notice.
Eligibility Criteria and Scope of Section 80G
Section 80G is applicable to:
Individuals
Firms
Companies
Donations made must be to institutions registered under Section 80G. Not all NGOs or charitable trusts qualify. Additionally:
Foreign charities are excluded.
Only domestic, registered organizations with a valid 80G certificate are eligible.
Businesses can claim deductions but may face restrictions under other sections.
Types of Donations and Their Deduction Limits
Donations under Section 80G fall into four categories:
Category | Deduction Allowed | Examples |
100% without qualifying limit | 100% | PM National Relief Fund, National Defence Fund |
50% without qualifying limit | 50% | Jawaharlal Nehru Memorial Fund |
100% with qualifying limit (10% of GTI) | 100%, subject to limit | Government or local authority for family planning |
50% with qualifying limit (10% of GTI) | 50%, subject to limit | Approved charitable institutions |
Check the nature of the donee before donating. Only certain donations qualify for the full benefit without limits.
Is Section 80G Deduction Allowed in the New Tax Regime?
No. Section 80G is not available under the new tax regime as per Section 115BAC. Taxpayers opting for the new regime must forgo most exemptions and deductions—including this one.
How Section 80G Works in the Old Tax Regime
In the old regime, taxpayers can claim deductions under Section 80G. The total deduction is calculated based on:
Type of donee (100% or 50% deduction)
Whether a qualifying limit applies (10% of Adjusted Gross Total Income)
Mode of payment
Valid documentation (receipt + Form 10BE)
This regime remains beneficial for those with high donations, home loan interest, HRA, or insurance premiums.
Approved Payment Methods for Section 80G Donations
The donation must be made using traceable payment methods:
Cheque
Demand Draft
Net Banking / UPI
Debit/Credit Card
Cash donations are allowed only up to ₹2,000. Any amount above that must be paid through non-cash means. In-kind donations—like food or clothes—do not qualify.
Documents Required to Claim 80G Deduction
To ensure your donation qualifies for deduction under Section 80G, specific documents must be collected, verified, and securely stored. These serve as proof of donation and are crucial for both filing and future verification by the Income Tax Department.
1. Donation Receipt
The donation receipt is the primary evidence of your contribution. It must include the following details:
Name of the donor: Should match the name used in the ITR.
Amount donated: Clearly mention the exact amount contributed.
Mode of donation: Whether paid via cheque, online transfer, or cash.
Name and address of the donee institution: Complete contact details of the organization receiving the donation.
PAN of the institution: The Permanent Account Number of the registered institution.
Section 80G Registration Number: A valid and active registration number issued to the donee under Section 80G, along with the date of validity.
Without a properly formatted receipt containing all the above fields, the deduction can be denied.
2. Form 10BE
Effective from Financial Year 2022–23, Form 10BE is mandatory for all donations claimed under Section 80G. It is:
Issued by the recipient institution
Downloaded by the donor from the Income Tax portal
Must contain:
Institution’s name and PAN
Unique Registration Number under 80G
Donor details
Total donation amount
Includes a digital watermark as a mark of authenticity
If this form is not uploaded by the donee or downloaded by the taxpayer, the deduction claim will be considered incomplete and could be disallowed during assessment.
3. Form 58A (if applicable)
Form 58A is required only if you're claiming a 100% deduction subject to qualifying limits, specifically for donations made to programs such as family planning initiatives by the government or approved local authorities.
This form certifies the approved status of the project or program under Section 80G(2)(a)(iii). If you are not contributing to such programs, this form is not required.
4. Payment Proof
Supporting payment evidence is crucial to confirm that the donation was actually made. Acceptable forms include:
Bank statement showing the transaction
Credit/debit card receipt
UPI or Net banking confirmation slip
Cancelled cheque (if applicable) with corresponding cleared payment
Note: Cash donations above ₹2,000 are not eligible. Hence, a valid traceable payment method and its proof are non-negotiable.
Retention Period
It is highly recommended to retain all the above documents for a minimum of 6 years from the end of the financial year in which the donation is claimed. This is to ensure you are well-prepared in case the Income Tax Department issues a notice, calls for a reassessment, or requests clarification during scrutiny.
Proper documentation and timely collection not only help secure your deduction but also shield you from compliance risks in the future.
Reporting Section 80G Donations Accurately in Your ITR
Follow this step-by-step approach:
Collect all documents: Receipts, Form 10BE, and payment proofs.
Log in to the ITR portal and select your ITR form (usually ITR 1 or 2).
Under ‘Deductions’, go to Chapter VI-A → Section 80G.
Enter:
Name of donee
PAN and address of the institution
Donation amount
Eligible percentage (100% or 50%)
Applicable limit (with or without)
Cross-check with Form 10BE. If mismatched, ask for a revised version.
Submit the return with supporting proofs saved securely.
Common Mistakes to Avoid When Claiming Section 80G Deduction
1. Donating to Unregistered Charities
Only donations made to institutions that are registered under Section 80G of the Income Tax Act are eligible for deduction. Many taxpayers contribute to NGOs or local organizations assuming they qualify, but unless the organization holds a valid 80G registration, the deduction cannot be claimed. Always verify the institution’s 80G status and ask for their registration number before donating.
Consequence: Such donations are completely disallowed during assessment, and no tax benefit will be granted, regardless of the donation amount or intention.
2. Missing Form 10BE
From Financial Year 2022-23 onwards, it is mandatory to obtain Form 10BE from the donee institution to claim any deduction under Section 80G. This form serves as official proof that a qualifying donation has been made. Simply having a donation receipt is no longer sufficient.
Consequence: Without Form 10BE, the deduction will be automatically disallowed, even if all other details are correctly filled. This can lead to reduced refund or increased tax payable.
3. Paying More Than ₹2,000 in Cash
Section 80G strictly disallows deductions for cash donations exceeding ₹2,000. This rule exists to ensure traceability of transactions and prevent abuse of tax deductions.
Consequence: If a cash donation exceeds the threshold—even by ₹1—it becomes entirely ineligible for deduction. The Income Tax Department may also question the legitimacy of the expense during scrutiny.
4. Using Incorrect Deduction Type (50% Instead of 100%)
Each donee institution qualifies for either a 50% or 100% deduction, with or without an income limit. Taxpayers sometimes assume the deduction type without verifying the actual category applicable to that institution.
Consequence: Claiming the wrong deduction rate results in mismatch during automated checks. This can reduce the allowable deduction and trigger notices for incorrect filing.
5. Entering Donee Details Inaccurately in the ITR
The ITR form requires precise inputs: donee name, PAN, address, registration number, and donation amount. A simple typo in any of these—especially PAN or registration number—can lead to mismatch with Form 10BE records.
Consequence: Incorrect details may lead to the system treating your donation as invalid. Even if the payment was made correctly, poor data entry can nullify your deduction claim.
6. Claiming Deductions Under the New Regime Where It's Not Allowed
Under the new tax regime (Section 115BAC), most exemptions and deductions—including Section 80G—are not available. Taxpayers who opt for the new regime but still report 80G deductions often do so out of habit or oversight.
Consequence: The claim is ignored during processing, which could affect expected refunds. Repeated violations may also lead to scrutiny or system-generated notices for misreporting.
How TaxBuddy Simplifies 80G Deduction Claims
TaxBuddy helps users avoid common pitfalls by:
Prompting exact details required under Section 80G
Auto-verifying donee PAN and 80G eligibility
Storing receipts and Form 10BE securely in one place
Offering expert guidance to file ITRs error-free
The app also distinguishes between old and new regime deductions, helping you maximize claims where allowed.
Conclusion
Donations not only uplift communities—they also offer tax relief when handled correctly. Section 80G allows taxpayers to convert charitable intent into financial benefit, provided all conditions are met. Ensure donations are routed through proper channels, documented correctly, and entered accurately in your ITR. For a secure and seamless experience, it's best to rely on expert-driven digital platforms.
For anyone looking for assistance in tax filing, I highly recommend you download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers a flexible tax filing experience by providing both self-filing and expert-assisted plans. Users comfortable with the ITR process can opt for self-filing through the intuitive platform, while those seeking professional guidance can choose expert-assisted options for personalized filing support.
Q2. Which is the best site to file ITR?
The best site to file ITR depends on the level of guidance required. While the government portal (incometax.gov.in) is available for free filing, platforms like TaxBuddy offer enhanced experiences with features such as error checks, AI validation, and real-time support. TaxBuddy is widely trusted for simplifying complex deductions like Section 80G.
Q3. Where to file an income tax return?
You can file your income tax return either through the official government website (https://www.incometax.gov.in) or through authorized ERIs like TaxBuddy. TaxBuddy is recognized by the Government of India and provides a secure and user-friendly interface for filing, making it ideal for both salaried and non-salaried taxpayers.
Q4. What is the maximum deduction I can claim under Section 80G?
There is no fixed maximum cap under Section 80G, but the deduction is subject to the nature of the donation. Some donations qualify for 100% deduction without limit, others for 50% with or without a limit of 10% of adjusted gross total income. Ensure the donee institution falls under an approved category.
Q5. Can I claim a deduction for donations made in kind?
No, in-kind donations such as clothes, food, or services are not eligible under Section 80G. Only monetary donations paid via cheque, bank transfer, or UPI are eligible for deductions. Ensure payments are made using traceable modes and obtain proper receipts.
Q6. Do I need to submit original receipts with my ITR?
Submission of original receipts is not required at the time of filing. However, it's essential to retain them along with Form 10BE for at least 6 years. These may be demanded during assessment or scrutiny to verify your claim under Section 80G.
Q7. What happens if there’s a mismatch in the donation amount and Form 10BE?
If the donation receipt and Form 10BE do not match, the deduction claim can be rejected. In such cases, contact the donee institution immediately and request a corrected Form 10BE with accurate details. Do not proceed with the ITR submission until records are consistent.
Q8. Is Form 10BE mandatory for all Section 80G claims?
Yes, starting from FY 2022-23, Form 10BE is mandatory for claiming deductions under Section 80G. This form confirms the receipt of the donation and must be downloaded from the Income Tax portal. It should bear the watermark of authenticity and align with the details entered in your ITR.
Q9. Are donations to foreign charities eligible for tax deduction?
No. Deductions under Section 80G are only allowed for donations made to Indian institutions registered with the Income Tax Department under Section 80G. Contributions to foreign entities, regardless of purpose, do not qualify for any tax relief in India.
Q10. What is the cash donation limit under Section 80G?
Cash donations are eligible for deduction only up to ₹2,000. Any donation exceeding this limit must be made via non-cash modes such as cheque, demand draft, or digital payments. Failure to follow this rule will make the entire donation ineligible for deduction.
Q11. Can companies and HUFs also claim deductions under Section 80G?
Yes, Section 80G benefits are not limited to individuals. Hindu Undivided Families (HUFs), partnership firms, companies, and other entities can also claim deductions for eligible donations, provided all documentation and compliance norms are followed.
Q12. How does TaxBuddy help with Section 80G deduction filing?
TaxBuddy simplifies the process of claiming Section 80G deductions by enabling users to store and validate donation receipts, auto-fill ITR fields based on uploaded documents, and cross-check entries with Form 10BE. With expert-assisted options, users can ensure full compliance and maximum allowable deductions without manual errors.
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