Section 80G — Tax Benefit on Donations

How donations to eligible funds and charitable institutions can reduce your taxable income — 100% vs 50% deduction, and the fine print you shouldn't miss.

Quick takeaways

Donation must be made to an eligible fund/institution that holds a valid 80G certificate.

Deduction can be 100% or 50% of the donated amount, with or without qualifying limit.

Cash donations above ₹2,000 are not eligible.

Overview

Understanding the categories

100% deduction without qualifying limit: Prime Minister’s National Relief Fund, National Defence Fund, PM CARES Fund, etc.

50% deduction without qualifying limit: Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust, etc.

100% deduction subject to 10% of adjusted gross total income: Govt or local authority for promoting family planning.

50% deduction subject to 10% of adjusted GTI: Donations to other approved trusts/institutions.

Key concepts

How the qualifying limit works

Adjusted gross total income = Gross total income minus deductions under Chapter VI‑A except 80G itself.

Where qualifying limit applies, only donations up to 10% of this adjusted GTI are eligible for deduction.

Example: if adjusted GTI is ₹8,00,000 and you donate ₹1,00,000 to a 50% category, only ₹80,000 is considered, and deduction is 50% of that = ₹40,000.

Important facts

Documentation and mode

Always obtain a stamped receipt with the trust’s 80G registration number.

Cash donations above ₹2,000 are not deductible.

Trust must have a valid registration at the time of donation.

Key takeaways

Smart giving tips

Plan donations early — understand which funds offer 100% deduction.

Don’t donate just for tax saving; align with your philanthropic intent.

Keep digital payment proof for all donations.

FAQs

Common questions

Is donation to political parties covered under 80G?

No, donations to political parties are covered under Section 80GGC (80GGB for companies), with its own rules.

Can I claim 80G in the new tax regime?

No, 80G is available only in the old tax regime.

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