Introduction
Many people donate money to charities during the year and forget to check the tax side of it. If you gave money to a recognised fund or institution, the Income-tax Act lets you reduce your taxable income through Section 80G.
The rule is not one flat rate. The deduction can be 100% or 50% of what you gave, and some donations have no upper limit while most are capped at 10% of your adjusted gross total income. Getting the bucket right matters — claim the wrong one and your deduction can be disallowed.
Quick answer
Section 80G lets you deduct charitable donations from taxable income. National relief funds like PM CARES give 100% deduction with no cap; most registered NGOs give 50% capped at 10% of adjusted gross total income. It works only under the old tax regime, and donations above ₹2,000 must be paid by cheque, UPI or bank transfer — cash above that gets zero benefit.
What changed vs what stayed the same
| Aspect | FY 2025-26 (AY 2026-27) | From FY 2026-27 onward |
|---|---|---|
| Governing law | Section 80G of the Income-tax Act 1961 | Section 133 of the Income-tax Act 2025 — same provision, only the number moved |
| Donation buckets (100% / 50%) | As described below | Unchanged |
| 10% of adjusted GTI ceiling | Applies to buckets C and D | Unchanged |
| Cash rule (₹2,000 limit) | Applies | Unchanged |
| Form 10BE from the donee | Mandatory since AY 2023-24 | Unchanged |
| Available in the new tax regime | No | No |
The section number 80G becomes Section 133 from 1 April 2026 (verified across six published mapping tables, including TaxGuru, the CBDT concordance summary and the constitutionofindia.in comparison). Every amount, limit and condition stays the same.
The four 80G donation deduction buckets
Not every donation gets the same treatment. Sort your donation into the right bucket first:
| Bucket | Deduction | Ceiling | Who belongs here |
|---|---|---|---|
| A — 100% without qualifying limit | Full amount deducted | None | PM CARES Fund, PM National Relief Fund, National Defence Fund, Swachh Bharat Kosh, Clean Ganga Fund, National Children’s Fund |
| B — 50% without qualifying limit | Half the amount deducted | None | Jawaharlal Nehru Memorial Fund, PM’s Drought Relief Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation |
| C — 100% with qualifying limit | Full amount, up to the qualifying amount | 10% of adjusted GTI | Donations to the government or a local authority for family-planning promotion, Indian Olympic Association |
| D — 50% with qualifying limit | Half the amount, up to the qualifying amount | 10% of adjusted GTI | Most registered NGOs holding 80G(5) approval, educational institutions, hospital trusts, temple/mosque/church repair funds |
The Income Tax Department’s own Section 80G FAQ lists 24 named funds in its Annexure-1 that qualify for the 100%-without-limit bucket. Bucket D is where almost all everyday giving lands — donations to charity hospitals, orphanages, schools, registered NGOs and religious-trust repair projects.
One caution on religious donations: a donation is not eligible if the institution exists for the benefit of a particular religious community. A religious trust holding a valid 80G(5) approval for specified purposes (for example, repairs or running a hospital) is fine. Check the approval, not the name board.
Who can claim 80G
There is no restriction on the type of taxpayer. Individuals, Hindu Undivided Families, NRIs, partnership firms, companies and trusts can all claim 80G, provided the donation goes to an eligible institution and the paperwork is in order. What you cannot do is claim it on behalf of someone else’s donation — the deduction follows the donor.
How the 10% of adjusted GTI limit works
For buckets C and D, the qualifying amount is capped at 10% of your adjusted gross total income — gross total income minus long-term capital gains, short-term capital gains taxed at special rates, deductions under sections 80C to 80U (except 80G itself), and certain exempt incomes.
Worked example — a donor in the 31.2% slab:
- Gross total income: ₹15,00,000
- Other Chapter VI-A deductions (except 80G): ₹2,00,000
- Adjusted GTI = ₹15,00,000 − ₹2,00,000 = ₹13,00,000
- Qualifying amount = 10% of ₹13,00,000 = ₹1,30,000
- Donation to a bucket-D NGO: ₹3,00,000
- Deduction = lower of (₹3,00,000, ₹1,30,000) × 50% = ₹65,000
- Tax saved = ₹65,000 × 31.2% = ₹20,280
Any donation above the ₹1,30,000 qualifying amount gives no additional deduction in this case.
The cash rule: ₹2,000 is the line
The Finance Act 2017 cut the cash-donation limit from ₹10,000 to ₹2,000. Donations of more than ₹2,000 paid in cash are entirely disallowed — not just the excess. Pay anything above ₹2,000 by cheque, demand draft, NEFT/RTGS, UPI or card, and keep the bank or UPI trace.
Donations in kind — clothes, food, medicines, equipment — do not qualify at all. Section 80G covers donations of a sum of money only.
Only under the old tax regime
Section 80G, like 80C and 80D, is an old-regime-only deduction. Under the default new tax regime (Section 115BAC of the 1961 Act; Section 202 of the 2025 Act from FY 2026-27), no 80G deduction is allowed, however large the donation. The Department’s AY 2026-27 validation rules confirm the return blocks the 80G field when the new regime is selected.
A salaried person can switch between the old and new regimes every year, so donors with large giving should compare both regimes at filing time.
Documents you must keep
| Document | What it must show | Why it matters |
|---|---|---|
| Donation receipt | Donee’s name, PAN, address, 80G registration number/URN, amount, date, mode of payment, stamp and signature | Your first proof of the donation |
| Form 10BE | System-generated certificate from the donee, issued after it files Form 10BD (its donation statement) by 31 May | Mandatory for every 80G claim since AY 2023-24; the Department matches your ITR claim against the donee’s 10BD filing, so a receipt without a matching filing can get the deduction denied |
| Payment proof | Bank statement, UPI/NEFT reference, cheque copy | Confirms the non-cash mode for amounts above ₹2,000 |
Nothing is uploaded with the e-filed return — keep the originals for assessment. CSR spending under Companies Act Section 135 is generally not deductible under 80G; the only named exceptions are Swachh Bharat Kosh and Clean Ganga Fund, where the law expressly allows it.
How to claim: step by step
- Pick an eligible donee. Confirm its 80G(5) approval is valid for the financial year — ask for the registration/URN, and check it on the Income-tax portal.
- Pay by a non-cash mode for anything above ₹2,000. UPI is the simplest trail.
- Collect the receipt with the institution’s PAN and 80G number on it.
- Collect Form 10BE from the donee (it can issue it only after filing its own Form 10BD by 31 May).
- File under the old regime and claim the deduction in Schedule VI-A of the ITR — our step-by-step ITR filing guide walks through the e-filing portal screens.
Why claims get rejected
- Cash donation above ₹2,000.
- The donee skipped its Form 10BD filing, so no matching Form 10BE exists.
- The return was filed under the new tax regime.
- Donation in kind, or to a non-approved institution.
- Missing PAN or 80G registration number on the receipt.
Practical impact
The deduction favours donors in higher slabs. A donor in the 31.2% slab giving ₹1,00,000 to a bucket-D NGO (assume the 10% GTI ceiling is not binding) gets a ₹50,000 deduction and saves ₹15,600 in tax. The same ₹1,00,000 to PM CARES Fund saves ₹31,200, because the full amount is deductible with no ceiling.
A donor in the 10% slab gets proportionally less — but the deduction is still real money off the tax bill.
Frequently asked questions
Can I claim 80G deduction under the new tax regime?
No. 80G is an old-regime-only deduction. If you file under the new tax regime, the donation gets no tax benefit. Salaried taxpayers can switch to the old regime in the year of a large donation to claim it.
What is the maximum deduction allowed under Section 80G?
There is no single ceiling. For bucket A and B donations there is no upper limit — 100% or 50% of the full donation. For buckets C and D, the qualifying amount is capped at 10% of adjusted gross total income, and then the 100% or 50% rate applies.
What is the cash donation limit under 80G?
Only cash donations up to ₹2,000 per donation are eligible. Any donation above ₹2,000 paid in cash is fully disallowed. Pay larger amounts by UPI, card, cheque or bank transfer.
Are in-kind donations (clothes, food) eligible under 80G?
No. Section 80G applies to donations of a sum of money. Clothes, food, medicines and equipment do not qualify, whatever their value.
Is a donation to PM CARES Fund eligible for 100% deduction?
Yes. PM CARES Fund sits in the 100%-without-limit bucket, so the entire donation is deductible with no 10% GTI ceiling. The same applies to the PM National Relief Fund and the National Defence Fund.
What is Form 10BE and why is it important for my 80G claim?
Form 10BE is the system-generated donation certificate the donee issues after filing its own Form 10BD by 31 May. It is mandatory for every 80G claim since AY 2023-24 — the Department matches your claim against the donee’s filing, so a receipt without Form 10BE can get your deduction denied.
Can companies claim 80G on CSR contributions?
Generally no. CSR expenditure under Section 135 of the Companies Act cannot be reclassified as an 80G donation. The only named exceptions are the Swachh Bharat Kosh and the Clean Ganga Fund, where the law expressly allows the deduction.
Is 80G different from 80GGA?
Yes. 80GGA covers donations for scientific research or rural development, while 80G covers general charitable donations to approved funds and institutions. Political contributions fall under 80GGC (any person) and 80GGB (companies). Under the 2025 Act they map to Sections 135, 137 and 136 respectively.
Official sources
- Income-tax Act 1961 — Section 80G: https://www.indiacode.nic.in/
- Income-tax e-Filing Portal — Form 10BD/10BE guidance: https://www.incometax.gov.in/iec/foportal/
- Income Tax Department — Section 80G FAQ: https://www.incometaxindia.gov.in/
Reviewed by Asuthod Rathod, CA. Last updated: 20 October 2026.
Disclaimer: This is general information, not tax advice. Section numbers, limits and the form requirements above apply to FY 2025-26 unless stated; check the Act, the 2025 renumbering table and your ITR form instructions for your tax year before claiming.
Editorial byline for eircicai tax saving guides — covering 80C investments, ELSS, PPF, NPS, and regime comparison. Content is reviewed by Asuthod Rathod, CA.