Claiming Tax Deductions Under Section 80G for Donations to Charities in Your ITR
- Bhavika Rajput
- Jun 11
- 9 min read
Donating to registered charities in India can offer more than just goodwill—it can also reduce your taxable income. Under Section 80G of the Income Tax Act, taxpayers contributing to approved funds or institutions may be eligible for deductions while filing their Income Tax Return (ITR). These deductions, however, come with specific eligibility rules, payment modes, and documentation requirements. Only donations made through traceable, non-cash means to registered charities qualify, and benefits can only be claimed under the old tax regime. The right knowledge can turn your generosity into tax savings.
Table of Contents
What is Section 80G of the Income Tax Act?
Section 80G of the Income Tax Act, 1961, provides tax deductions for donations made to certain recognized funds, charitable institutions, and relief organizations in India. This provision aims to encourage philanthropic contributions by reducing the donor’s taxable income. However, not all donations are eligible—only contributions made to institutions that possess valid Section 80G registration are considered. The institution must provide a receipt with key details such as the donation amount, the institution’s name, PAN, and 80G registration number.
The deduction can either be 50% or 100% of the donated amount, with or without restrictions, depending on the donee organization. The allowance also depends on whether the donation exceeds 10% of the donor’s adjusted gross total income (AGTI) for certain categories.
Who is Eligible to Claim Section 80G Deductions?
Any taxpayer who makes eligible donations can claim a deduction under Section 80G. This includes:
Individuals – Salaried or self-employed persons
Companies – Domestic and multinational corporations
Firms – Including LLPs and partnership firms
Non-Resident Indians (NRIs) – For donations made to approved Indian institutions
The benefit applies to both resident and non-resident taxpayers as long as the donation is made to an eligible entity and documented as per the prescribed rules.
Types of Donations Allowed Under Section 80G
Donations Eligible for 100% or 50% Deduction
Donations are grouped into four broad categories:
Category | Deduction Allowed | Limit on Deduction | Examples |
100% without limit | 100% | No limit | National Defence Fund, PM’s National Relief Fund |
50% without limit | 50% | No limit | PM’s Drought Relief Fund |
100% with limit | 100% | Up to 10% of AGTI | Govt. funds for family planning |
50% with limit | 50% | Up to 10% of AGTI | Local authority for charitable purpose |
In categories with a 10% AGTI cap, only donations within this threshold are deductible. Excess amounts won’t qualify for relief.
Payment Modes and Documentation Rules
Accepted Modes of Payment
Donations must be made in money form—i.e., cash, cheque, draft, online transfer, debit/credit card, or UPI.
In-kind donations (such as food, clothes, or medicines) are not eligible for deduction.
Donations exceeding ₹2,000 must be made through non-cash modes to qualify for a deduction.
Donation Receipt Requirements
To claim the deduction, the receipt from the institution must include:
Name and address of the institution
PAN of the institution
Section 80G registration number with validity
Amount donated
Name of the donor
Without these details, the donation cannot be claimed as a deduction.
How to Claim Section 80G Deduction in Your ITR
1. Collect a Valid Donation Receipt
Start by obtaining a proper receipt from the charitable institution. This isn’t just a formality—it's essential for your claim to be considered valid. The receipt must include:
Full name and address of the institution
PAN of the donee organization
Section 80G registration number, along with its validity period
Exact amount donated
Your name as the donor
Without this receipt, your donation won't be accepted for deduction, regardless of how reputable the institution is.
2. Verify Eligibility of the Institution
Ensure that the organization you donated to is actually registered under Section 80G on the date of your donation. Many institutions may have outdated or expired registrations. You can:
Check their website or donation page for the current 80G certificate
Cross-verify on the Income Tax Department’s official portal
Only donations made to validly registered institutions are eligible for deductions.
3. Classify the Type of Deduction
Determine the specific category of your donation. This affects the percentage of deduction you're entitled to and whether there's a cap based on your income.
There are four classification types:
100% deduction without limit
50% deduction without limit
100% deduction with limit (10% of AGTI)
50% deduction with limit (10% of AGTI)
To know the correct classification:
Refer to the donation category list issued by the Income Tax Department
Refer to your receipt, which sometimes mentions the applicable category
If your donation falls in the “with limit” category, remember: only up to 10% of your Adjusted Gross Total Income (AGTI) is considered for deduction.
4. Enter the Details in Your ITR Form
Step 4.1 – Locate the Deduction Section
Login to your ITR filing platform (Income Tax portal or TaxBuddy), and head over to the “Deductions under Chapter VI-A” section of the form.
Step 4.2 – Fill In Donation Details
You’ll be prompted to fill out specific information about your donation:
Name of the Donee Organization
PAN of the Institution
Donation Amount Paid
Eligible Amount for Deduction based on the classification (either 50% or 100%)
Mode of Payment (ensure it’s non-cash if above ₹2,000)
Make sure all entries match the details in your receipt. Any mismatch could trigger scrutiny or lead to disallowance of the claim.
5. Keep Documentary Proof for Future Verification
Even after successfully claiming the deduction, it’s crucial to retain all related documents in case the tax department raises any queries later.
Here’s what to keep:
Donation receipts (physical or digital copy)
Bank transaction details or payment confirmation if paid via UPI, card, or bank transfer
Copy of the 80G certificate (if available or shared by the institution)
Acknowledgment of the ITR showing your claimed deduction
These documents may not be required while filing, but are essential if your case is selected for assessment or audit.
Is Section 80G Allowed in the New Tax Regime?
No. Section 80G deductions are not permitted under the new tax regime introduced under Section 115BAC. Taxpayers opting for the new regime must forgo most deductions and exemptions, including those under Chapter VI-A like Section 80C, 80D, and 80G.
To claim Section 80G benefits, a taxpayer must opt for the old tax regime while filing their income tax return.
How Section 80G Works in the Old Tax Regime
Deduction Limits Based on Institution Category
The deduction is calculated based on two aspects:
Type of institution (100% vs 50%)
Whether there’s a cap on 10% of AGTI
Example: If a taxpayer donates ₹1,00,000 to an institution eligible for 50% deduction with limit, and their AGTI is ₹8,00,000:
10% of AGTI = ₹80,000 (max deduction base)
50% of ₹80,000 = ₹40,000 deduction allowed
Key Reminders and Recent Updates
Old Regime Required
Tax deductions under Section 80G are exclusively available to taxpayers opting for the old tax regime. Under the new regime introduced by Section 115BAC, most exemptions and deductions under Chapter VI-A, including 80G, are disallowed. This means if you wish to claim any benefit for donations, you must file your return under the old tax regime. This distinction is critical when choosing your tax slab during filing, especially for salaried individuals or professionals with significant eligible deductions.
Digital Payment Preference
To promote transparency and digital traceability, the government has mandated that any donation above ₹2,000 must be made through non-cash methods. Acceptable modes include:
Bank transfers
UPI
Debit or credit cards
Cheques or demand drafts
Cash donations exceeding ₹2,000 will not qualify for deduction, even if given to a valid 80G-registered entity. This rule encourages cleaner, verifiable donation trails and ensures the integrity of tax claims.
Receipt Validation
Your donation receipt isn't just a formality—it's the foundation of your deduction claim. The receipt must contain:
Name and address of the donee institution
PAN of the institution
Section 80G registration number and its validity
Date and amount of donation
Name of the donor (matching the PAN on the ITR)
If any of these elements are missing, your claim can be rejected during processing or audit. Always verify this information before filing.
NRI Eligibility
Non-Resident Indians (NRIs) are also entitled to claim deductions under Section 80G, provided the donation is made to an Indian charitable institution registered under the section. NRIs must ensure that:
The donee is located in India
The payment is made from an account that is legally permissible under FEMA rules
The receipt and documentation follow the same standards as those for resident taxpayers
This inclusion makes it easier for NRIs to support causes back home while optimizing their Indian tax obligations.
80G Registration Check
Institutions eligible under Section 80G must hold a valid registration certificate. The validity of the certificate on the date of donation is crucial. Even if a trust or NGO was registered previously, any lapse or expiration in their 80G approval at the time of your donation disqualifies the deduction. You can verify the current registration status of a charitable institution via the Income Tax Department’s portal or ask the organization for an updated certificate before making a contribution.
Conclusion
Section 80G empowers taxpayers to contribute to social causes while reducing their tax burden—provided donations are well-documented, routed digitally, and made to registered institutions. The deduction can be substantial when optimized under the old tax regime. Platforms like TaxBuddy help you file your returns with confidence and ensure every eligible deduction, including those under Section 80G, is properly accounted for. For anyone looking for assistance in tax filing, 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 both options. You can choose to file your return yourself with guided steps, or opt for expert-assisted filing where professionals handle the entire process and ensure accuracy.
Q2. Which is the best site to file an ITR?
The “best” platform depends on complexity and support needs:
Income-Tax e-Filing Portal – Free, official, but offers minimal hand-holding.
TaxBuddy – Combines AI-driven form pre-fill, real-time validation, and optional CA assistance. It is especially useful for maximising deductions such as Section 80G or 80C without calculation errors.
Other portals – Some focus on DIY only; others charge premium fees for expert help.
For a balance of automation and human expertise—plus free post-filing notice management—TaxBuddy is a compelling choice.
Q3. Where can I file an income-tax return?
You have two legal avenues:
Government Portal – Login at incometax.gov.in, fill the applicable ITR form, and e-verify.
Authorised Intermediaries (e-Return Intermediaries) – Platforms like TaxBuddy that connect securely to the Income-Tax Department via APIs, automate data pulls, and offer personalised support. These intermediaries must comply with Section 139D rules and 128-bit encryption standards.
Q4. Can I claim Section 80G deductions under the new tax regime?
No. The concessional regime under Section 115BAC disallows all Chapter VI-A deductions (apart from Section 80CCD(2) and 80JJAA in certain cases). To benefit from 80G, you must opt for the old tax slabs in your ITR.
Q5. Are in-kind donations eligible for tax deductions under Section 80G?
No. Only monetary contributions qualify:
Cash (restricted to ₹2,000 per donor per organisation)
Cheque, Draft, or Electronic Transfer (no limit, subject to AGTI cap)
Digital modes such as UPI, credit/debit card, IMPS, NEFT
Goods or services donated—food, clothes, books—do not fetch any 80G deduction.
Q6. How do I verify that a charity is eligible under Section 80G?
Donation Receipt: Must list the donee’s name, address, PAN, Section 80G Registration Number, validity period, and the donation amount.
Income-Tax Portal Search: Go to “Tax Exempt Organisations” and input the charity’s PAN or name to confirm active 80G approval.
Cross-check Validity Dates: Ensure your donation date falls within the registration’s validity window.
Q7. Can NRIs claim Section 80G deductions for donations to Indian charities?
Yes, provided:
The donation is made to an Indian-registered 80G entity.
Payment is routed through Indian banking channels (NRE/NRO account, debit/credit card, UPI linked to an Indian bank).
The receipt contains all mandatory details for your NRI ITR.
The deduction is claimed in the same manner as for residents, subject to the 10 % Adjusted Gross Total Income (AGTI) cap for certain donations.
Q8. What if my donation exceeds the 10 % AGTI limit?
Section 80G splits charities into two buckets: “without limit” (100 % or 50 % deduction, no ceiling) and “with limit” (subject to 10 % of AGTI). Any amount above this ceiling in the latter category is ignored for deduction; it cannot be carried forward.
Q9. Is it mandatory to provide the PAN of the charitable organisation?
Absolutely. From AY 2022-23 onward, the ITR utility validates the donee’s PAN + 80G Registration Number. Omitting or mis-entering these details can lead to automatic denial during CPC processing.
Q10. Where do I enter 80G details in the ITR form?
Navigate to “Deductions under Chapter VI-A → Section 80G”. You must fill:
Donation Category (100 %/50 % with/without limit)
Donee PAN
Donee Name (auto-populates in some utilities)
Donation Amount (Actual)
Eligible Amount (System auto-calculates based on category and AGTI limit)
If using TaxBuddy, these fields are pre-populated from your uploaded receipts and cross-checked against CBDT’s 80G database.
Q11. Can a company, partnership firm, or LLP claim 80G deductions?
Yes. All assessees—individuals, HUFs, firms, LLPs, companies—may claim 80G, subject to the same category rules and limits. The deduction reduces the entity’s taxable profits (not MAT/AMT book profits).
Q12. Are donations made via UPI or credit card eligible?
Yes. Any traceable digital mode—UPI, IMPS, NEFT, RTGS, debit or credit card—qualifies. Keep the:
Bank proof (transaction reference ID)
Donation receipt mentioning mode of payment
Both documents support the claim if the CPC or AO seeks verification.
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