How to Fill Schedule 80G for Donations in ITR
- Rashmita Choudhary
- 1 day ago
- 9 min read
Schedule 80G is the section in an Income Tax Return where donations made to approved charitable institutions are declared for deduction under Section 80G. The details entered in this schedule influence the deduction amount and directly impact taxable income. Accurate reporting ensures the donation is valid, eligible, and supported with proper documentation, especially under the old tax regime. With increased scrutiny and mandatory 80G verification norms, precise entry becomes essential. Digital tax platforms such as TaxBuddy simplify this process by ensuring donation data is matched correctly with AIS and validated before filing.
Table of Contents
Eligibility Requirements for Claiming Deduction Under Section 80G
Types of Donations: 100% Deduction and 50% Deduction Categories
Common Errors While Reporting 80G Donations and How to Avoid Them
Verification, AIS Matching, and Compliance Requirements for FY 2024-25
How Platforms Like TaxBuddy Help Ensure Accurate 80G Reporting
How Schedule 80G Works for Donation Claims
Schedule 80G is the dedicated section of the Income Tax Return used to report donations made to approved charitable institutions. Any donation eligible under Section 80G must be itemised here so that the deduction can be calculated correctly. Each donation is classified by category—100% deduction, 50% deduction, with limit or without limit—and the ITR automatically adjusts the eligible value based on what is entered. The schedule captures basic information such as the institution’s name, PAN, address, mode of payment, and the amount donated. Once all inputs are filled, the system computes the deduction, ensuring that only valid donations backed by correct documentation are allowed.
Eligibility Requirements for Claiming Deduction Under Section 80G
Only donations made to institutions or funds registered under Section 80G qualify for deduction. These entities must have an active, valid 80G approval for the financial year. Donations must be monetary; contributions in kind such as clothes, food, or materials are excluded. The donor can be an individual, company, HUF, partnership firm, or NRI. A valid receipt is compulsory and must contain the donee’s PAN, 80G registration number, donation amount, donor’s details, and date of donation. Cash donations exceeding ₹2,000 are not eligible, and only contributions made during the relevant financial year qualify for deduction in that year’s return.
Steps to Fill Schedule 80G in Your Income Tax Return
The first step is verifying the organisation’s eligibility and gathering all receipts. Once the ITR is opened, Schedule 80G appears under the “Deductions” tab. Donations are required to be entered separately, one row per donation. The schedule seeks basic details: name of the institution, address, PAN, amount donated, and mode of payment. The correct deduction category—50% or 100%, with or without limit—must be selected. If the donation falls under the 10% AGTI limit, the system computes the allowed deduction automatically after all income details are filled. Once all donations are entered, the summary panel reflects the final eligible deduction. A final verification step ensures every entry aligns with documentation, AIS, and Form 10BE (if applicable) before submission.
Types of Donations: 100% Deduction and 50% Deduction Categories
Donations eligible for deduction fall into four categories:
100% deduction without limit—such as donations to the National Defence Fund or the Prime Minister’s National Relief Fund.
50% deduction without limit—applicable to select funds and institutions.
100% deduction subject to limit—rare cases where the deduction is capped at 10% of Adjusted Gross Total Income.
50% deduction subject to limit—common for several charitable trusts and local organisations. Each donation’s classification determines how much can be claimed, and Schedule 80G requires taxpayers to identify the category properly. Most regular charitable organisations fall under the 50% deduction with limit category unless specifically notified otherwise.
Donation Limits and 10% Adjusted Gross Total Income Rule
For donations subject to restriction, only up to 10% of Adjusted Gross Total Income is allowed as deduction. Adjusted GTI is calculated after excluding long-term capital gains, short-term gains taxed at special rates, income covered under Sections like 115A or 115D, and deductions under Sections 80C to 80U (excluding 80G). If the aggregate of limited-category donations exceeds this cap, the deduction is proportionately reduced. Donations that fall in the “without limit” category are unaffected by this 10% cap. Accurate classification ensures the ITR computes the eligible deduction correctly and prevents under-reporting or ineligible claims.
How to Report Donations in Cash, Cheque, or Online Mode
The mode of payment influences eligibility. Cash donations up to ₹2,000 are permitted, but anything above that becomes automatically ineligible. Cheque, bank transfer, debit card, UPI, net banking, and credit card payments are fully eligible as long as receipts match the transactions. Schedule 80G separates cash from other payment modes, so amounts must be entered accordingly. Online donations must match bank statements or transaction history. In cases where multiple payments were made to the same institution, each entry should be listed separately unless the institution issued a consolidated receipt.
Documents Required for Filing Schedule 80G in ITR
A valid donation receipt is mandatory. The receipt must include the institution’s name, address, PAN, 80G registration number, date of donation, and donor details. If eligible for 100% deduction without limit, Form 10BE is usually required and is issued by the organisation. Bank statements or payment confirmations serve as supporting evidence when payment is made digitally. All documents must align with what is reported in the return, as inconsistencies can lead to questioning or disallowance during assessment.
Common Errors While Reporting 80G Donations and How to Avoid Them
Frequent mistakes include entering the wrong PAN of the institution, misclassifying deduction categories, claiming cash donations above ₹2,000, reporting donations to unregistered entities, and mismatching details from AIS. Another common issue is claiming deductions under the new regime, where 80G is not available. Verifying receipts, checking 80G validity, and ensuring consistency with AIS eliminates most reporting discrepancies. Digital platforms like TaxBuddy minimise such errors by automatically validating donation details during the filing process.
Is Section 80G Allowed in the New Tax Regime?
Section 80G is not allowed under the new tax regime. Anyone opting for the concessional tax slabs under Section 115BAC cannot claim deductions under Section 80G. This includes all categories of donations, regardless of the institution or mode of payment. Taxpayers must choose the old regime if they want to reduce taxable income through 80G deductions. Selecting the correct regime at the beginning of filing ensures the system displays the 80G schedule only when eligible.
How Section 80G Works in the Old Tax Regime
Under the old tax regime, Section 80G continues to function with all four deduction categories. Taxpayers must calculate their Adjusted GTI, determine which donations fall under limit or no-limit categories, and apply the correct percentage. The old regime allows taxpayers to maximise tax savings based on donations made during the financial year. Accurate reporting in Schedule 80G ensures the deduction is reflected properly in the total taxable income, sometimes leading to significant tax reduction.
Verification, AIS Matching, and Compliance Requirements for FY 2024-25
The Income Tax Department has strengthened compliance for 80G claims. All donations appearing in AIS must match the entries made in Schedule 80G, and any discrepancy triggers alerts or scrutiny. Institutions are now required to file detailed donation statements, and taxpayers must ensure their receipts match these submissions. Claiming donations without proper documentation or entering details inaccurately can lead to disallowance. Platforms like TaxBuddy assist by automatically checking AIS entries and matching them against receipts to reduce the risk of filing errors.
How Platforms Like TaxBuddy Help Ensure Accurate 80G Reporting
TaxBuddy guides taxpayers through each step of declaring donations and ensures the correct category, percentage, and limits are applied. The system cross-verifies AIS entries, highlights mismatches, checks if the institution’s 80G registration number is valid, and ensures mode-of-payment restrictions are followed. For taxpayers with multiple donations, the platform automatically segments entries into the correct categories and computes the eligible deduction. This reduces errors and ensures compliance with updated tax regulations, especially for FY 2024-25.
Conclusion
Schedule 80G plays a meaningful role in reducing taxable income when donations are made to approved institutions. Filing it correctly ensures the donation is accepted by the tax department and the eligible deduction is reflected as intended in the final tax computation. Anyone looking for support in reporting donations accurately or validating receipts can rely on modern, guided filing tools that simplify deductions and reduce errors. For anyone looking for assistance in tax filing, it is highly recommended to 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 provides both self-filing and expert-assisted plans, giving taxpayers flexibility based on their comfort level. The self-filing system uses guided workflows, automated validations, and smart error checks to help users file their returns independently with confidence. For individuals who prefer professional oversight—especially when dealing with deductions like Section 80G, HRA, capital gains, or business income—the expert-assisted plan connects users with qualified tax professionals who handle the end-to-end process. This dual approach ensures that taxpayers with simple or complex profiles have reliable and accurate filing support every year.
Q2. Which is the best site to file ITR? The official Income Tax e-filing portal remains the primary government platform. It offers direct access to ITR forms, prefilled data, AIS and TIS details, and online verification. However, many taxpayers prefer using technology-driven platforms like TaxBuddy for a more seamless experience. These platforms offer guided filing, error detection, mismatch alerts, document assistance, and optional expert review. For anyone looking for a smooth, mistake-free filing experience—especially for deductions like 80G—platforms such as TaxBuddy often prove more convenient and user-friendly.
Q3. Where to file an income tax return? Taxpayers can file their ITR either directly on the Income Tax Department’s e-filing portal or through trusted digital tax platforms. Filing through portals like TaxBuddy offers added layers of support such as deduction optimisation, AIS reconciliation, real-time assistance, and automated form selection. This helps reduce filing errors and ensures accurate reporting—especially useful when claiming donation deductions under Schedule 80G.
Q4. Can donations be claimed under Section 80G in the new tax regime? No. The new tax regime under Section 115BAC does not allow deductions under Section 80G. Anyone opting for the concessional slab rates cannot claim donation deductions, regardless of the donee or donation amount. Taxpayers who want to benefit from 80G must choose the old regime during filing. This choice must be made early in the filing process because selecting the wrong regime may hide the 80G schedule entirely.
Q5. What documents are needed to claim Section 80G deduction accurately? A valid donation receipt is essential and must include the institution’s name, address, PAN, 80G registration number, donation amount, donor details, and date of contribution. For donations eligible for 100% deduction without limit, Form 10BE issued by the institution is often required. Digital payment evidence—such as bank statements, UPI screenshots, or cheque details—strengthens the claim. Maintaining clean and organised documentation ensures smooth verification if the Income Tax Department asks for proof.
Q6. How should online or digital donations be reported in Schedule 80G? Donations made through UPI, net banking, debit card, credit card, or bank transfer must be reported under "Other Mode" in Schedule 80G with the exact transaction amount. The details on the receipt must match the transaction reference. Digital donations are considered more reliable for verification because they create clear financial trails. Keeping payment confirmations helps resolve any AIS mismatches during assessment.
Q7. Are cash donations eligible for deduction under Section 80G? Yes, but only up to ₹2,000. Any cash donation beyond this limit becomes ineligible, even if the organisation is registered under 80G. To claim the deduction, the receipt must clearly state that the payment was made in cash and must include all mandatory details. For larger contributions, digital payments are strongly recommended as they qualify fully and provide stronger documentary proof.
Q8. What happens if the donee’s PAN or 80G details are entered incorrectly in Schedule 80G? Incorrect details may lead to the disallowance of the deduction. The Income Tax Department cross-verifies donation claims with statements submitted by charitable institutions and AIS data. If the PAN, 80G registration number, or donation amount does not match, the entry becomes suspicious and may result in notices or rejection of the claim. Reviewing receipts carefully before filing ensures accurate reporting.
Q9. Can a revised ITR be filed if 80G donations were missed earlier? Yes. If a taxpayer forgot to claim eligible donations, a revised return can be filed before the deadline for the relevant assessment year. The revised return allows correction of errors, addition of donations, and updating Schedule 80G with accurate details. However, the taxpayer must have proper documentation to support the claim. Filing early helps avoid processing delays and reduces the chance of late-stage mismatches.
Q10. How does AIS affect Section 80G deductions? An AIS (Annual Information Statement) may display donation data reported by charitable organisations. If the details differ from what is filed in the ITR, the system may flag the mismatch. Ensuring the receipt data aligns with AIS helps avoid scrutiny or possible disallowance. Platforms like TaxBuddy assist by comparing AIS entries with your donations and alerting you if anything looks inconsistent.
Q11. What is the 10% Adjusted Gross Total Income limit under Section 80G? For donations falling under the “with limit” category, only up to 10% of Adjusted Gross Total Income can be claimed as a deduction. The limit is applied after adjusting for incomes taxed at special rates and deductions under other sections. If donations exceed this cap, the eligible deduction is reduced proportionately. Donations under the “without limit” category are not affected by the cap.
Q12. Why is using a digital platform like TaxBuddy helpful for claiming 80G deductions? Platforms like TaxBuddy simplify the reporting process by validating donation details, matching entries with AIS, and ensuring the organisation’s 80G registration is active. The system guides users through each step, reduces the risk of errors, and applies the correct deduction category automatically. For taxpayers who donate frequently, the platform helps maintain records, identify eligible claims, and avoid compliance issues—leading to a more accurate and stress-free filing experience.
