Donations Deduction explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The donations deduction of section 80G is now section 133 of the Income-tax Act, 2025. Donations to listed funds such as the Prime Minister's National Relief Fund and PM CARES are deductible in full; a donation to an approved non-profit organisation is deductible at 50%, subject to 10% of adjusted gross total income.
In the Income-tax Act, 2025 as enacted, the donor's deduction is section 133, the donee's approval is section 354, and its registration is section 332. Section 135 is the deduction for donations to scientific research and rural development (the old 80GGA).
What section 133 does
Section 133 is the successor to section 80G of the Income-tax Act, 1961. Its structure is the one donors already know: some donees qualify for the whole of the amount donated, others for a proportion, and the proportion is capped by a qualifying ceiling.
The Income-tax Act, 2025 takes effect from 1 April 2026 and applies from tax year 2026-27. The Income-tax Act, 1961 continues to govern every year up to 31 March 2026, including assessments, appeals and penalties for those years, because of the repeal and savings provision in section 536.
Old Act and new Act, side by side
| Income-tax Act, 1961 | What it did | Income-tax Act, 2025 |
|---|---|---|
| 80G | Donor's deduction for donations | 133 |
| 80G(5) | Approval of the donee institution | 354 |
| 12A / 12AB | Registration of the donee | 332 |
| 80GGA | Donations for scientific research or rural development | 135 |
| Form 10BD / 10BE | Donee's statement and donor's certificate | Form No. 113 / 114 |
The two kinds of donation
Funds deductible in full — section 133(1)(a)
The whole of the amount is deductible for the funds listed in sub-section (1)(a). The list includes the National Defence Fund, the Prime Minister's National Relief Fund, PM CARES, the National Children's Fund, the National Foundation for Communal Harmony, approved Universities and educational institutions of national eminence, the armed forces welfare funds, the National Sports Development Fund, the National Cultural Fund and a qualifying Chief Minister's Relief Fund.
A Chief Minister's or Lieutenant Governor's Relief Fund qualifies only if it is the only fund of its kind in the State or Union territory, is under the overall control of the Chief Secretary or the Department of Finance, and is administered as the State Government or Lieutenant Governor specifies.
Approved non-profit organisations — 50%, with a ceiling
A donation to a registered non-profit organisation that holds approval under section 354 falls in section 133(1)(b)(ii). The donor is eligible for a deduction of 50% of the donation, subject to 10% of adjusted gross total income, under section 133(2) — the note printed on every donation certificate in Form No. 114.
The section has further categories and conditions. Read it in full before computing a claim for a donee that is neither a listed fund nor an ordinary approved organisation.
How the ceiling works
Illustrative only. A donor's adjusted gross total income is ₹10,00,000, so the ceiling is ₹1,00,000. She gives ₹3,00,000 to an approved charitable trust. The qualifying amount is limited to ₹1,00,000, and the deduction is 50% of that — ₹50,000. The same ₹3,00,000 given to the Prime Minister's National Relief Fund would be deductible in full.
Proof and payment
- Form No. 114. The donee must issue the certificate of donation by 31 May following the financial year in which the donation was received. It replaces Form 10BE.
- Form No. 113. The donee reports every donation in its statement, also due by 31 May. It replaces Form 10BD, and the deduction is matched against it.
- Mode of payment. The section restricts cash donations above the prescribed limit. Pay by a banking channel and keep the proof.
- Donations in kind do not qualify — section 133(4).
Limits on the claim
Section 133 sits in Chapter VIII, so two general rules apply. Under section 122 the deduction cannot exceed gross total income and must be claimed in a return filed by the due date. And section 202 restricts most Chapter VIII deductions for a taxpayer under the default tax regime — check it before relying on a donation to reduce tax.
Compliance checklist
- Identify whether the donee is in the whole-amount list in section 133(1)(a) or is an approved organisation under section 354.
- Apply the 10% ceiling where the donation is to an approved organisation.
- Pay by banking channel; do not rely on a donation in kind.
- Collect Form No. 114 and check that the donee's name, PAN and Unique Registration Number are on it.
- Check section 202 if you are under the default regime.
How TaxClue helps
TaxClue checks the donee's approval, computes the qualifying amount and claims the deduction correctly in your return. For the donee's side, see our NPO registration (12A) and 80G approval service.
This is an explanatory guide, not tax advice, and it does not reproduce the sections in full. Read the bare text before you rely on it, and check for later amendments, the Income-tax Rules, 2026 and CBDT circulars and notifications.