Section 80G of the Income Tax Act, 1961 allows taxpayers to claim tax deductions on donations made to eligible charitable institutions, trusts, and government funds. This provision encourages individuals, companies, and organizations to contribute to social and charitable causes while receiving tax benefits.
This guide explains Section 80G in a simple and structured manner, including donation categories, deduction limits, eligibility, and ITR filing steps.
Section 80G provides tax deduction on donations made to specified charitable funds, institutions, and government organizations.
The deduction helps reduce taxable income and encourages donations for social welfare, education, healthcare, disaster relief, and public development.
Section 80G allows deduction based on the type of donation:
The actual money given to a charitable institution or fund.
The tax benefit received on that donation while filing Income Tax Return.
Example:
If you donate ?10,000 and the deduction is 50%, you can claim ?5,000 as tax deduction.
The person who gives the donation.
The institution or trust that receives the donation.
Any taxpayer can claim deduction under Section 80G:
Condition: Donation must be made to an eligible 80G registered institution.
There are four main categories of donations.
| Category | Deduction | Limit |
|---|---|---|
| 100% deduction | Full donation | No limit |
| 50% deduction | Half donation | No limit |
| 100% deduction | Full donation | 10% of Adjusted GTI |
| 50% deduction | Half donation | 10% of Adjusted GTI |
Examples include:
These donations get full deduction without limit.
Example:
Prime Minister’s Drought Relief Fund
This category provides 50% deduction without limit.
These include:
Limit: 10% of Adjusted Gross Total Income
Includes:
Limit: 10% of Adjusted Gross Total Income
Cash donation above ?2,000 is not allowed for deduction.
Accepted payment methods:
No.
If you choose the new tax regime under Section 115BAC, you cannot claim Section 80G deduction.
80G is available only in the old tax regime.
You need:
Form 10BE is a donation certificate issued by the charitable institution.
It contains:
This certificate is required for claiming deduction.
The donee institution files Form 10BD with donor details.
Income Tax Department matches:
ITR donation details
with
Form 10BD submitted by institution
If both match, deduction is allowed.
Adjusted GTI is calculated as:
Gross Total Income
minus
10% of this becomes the qualifying limit.
Calculate Gross Total Income
Calculate Adjusted Gross Total Income
Calculate 10% of Adjusted GTI
Divide donations into categories
Apply 100% or 50% deduction
Step 1: Go to Deductions section
Step 2: Select Section 80G
Step 3: Enter donation details
Step 4: Enter PAN of donee
Step 5: Enter donation amount
Step 6: Upload Form 10BE details
Step 7: Submit ITR
No.
One donation can be claimed only under Section 80G.
It cannot be claimed under any other section.
No.
Unused donation cannot be carried forward to next year.
Always verify:
Institution must:
Otherwise donors cannot claim deduction.
Section 80G is an important provision that allows taxpayers to support charitable causes while saving tax. Proper understanding of donation categories, limits, and documentation helps both donors and institutions remain compliant with Income Tax rules.
Before claiming deduction, always verify the 80G registration and ensure Form 10BE is available.
This ensures smooth ITR filing and avoids rejection of deductions.