Section 80G gives a tax deduction on donations to approved funds and charitable institutions. Donations to national funds (PM National Relief Fund, PM Cares, National Defence Fund) get a 100% deduction with no ceiling. Most registered trusts and NGOs give a 50% deduction, capped at 10% of your adjusted gross total income. Cash gifts above Rs2,000 do not qualify, and 80G is claimable only under the old tax regime.
80G Deduction Categories — 100% vs 50%
Every 80G donation falls into one of four buckets. The deduction rate (100% or 50%) and whether a qualifying-limit cap of 10% of adjusted gross total income applies both depend on the recipient. Adjusted gross total income (AGTI) = gross total income minus LTCG, STCG taxed at special rates and all other Chapter VI-A deductions (except 80G itself).
| Category | Deduction | 10% Cap | Examples |
|---|---|---|---|
| National funds (100%, no limit) | 100% | No cap | PM National Relief Fund, PM Cares Fund, National Defence Fund, National Sports/Cultural Fund, CM Relief Fund, Swachh Bharat Kosh, Clean Ganga Fund |
| Notified funds (50%, no limit) | 50% | No cap | Jawaharlal Nehru Memorial Fund, PM Drought Relief Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation |
| Approved institutions (100%, with limit) | 100% | 10% AGTI | Govt/local-authority family-planning promotion; Indian Olympic Association & select notified bodies |
| Approved trusts / NGOs (50%, with limit) | 50% | 10% AGTI | Most registered NGOs, charitable trusts, temples/religious institutions, hospitals and educational bodies with a valid 80G certificate |
Verify any institution's live 80G status on the Income Tax portal before donating. Under the Income-tax Act 2025 (AY 2026-27) 80G is re-codified as Section 133, but the deduction rates and limits are unchanged.
For the two "with limit" categories, only donations up to 10% of your adjusted gross total income qualify. Any excess simply gets no deduction — it is not carried forward. Large donors often split gifts between a no-limit national fund and a capped NGO to use the benefit fully.
How the 80G Deduction Is Calculated
Assume an adjusted gross total income of Rs12,00,000 and two donations — Rs50,000 to PM Cares Fund (100%, no cap) and Rs2,00,000 to a local NGO (50%, with 10% cap).
100% PM Cares Fund — no cap
50% Local NGO — 10% AGTI cap
The NGO gift of Rs2,00,000 exceeds the qualifying limit of Rs1,20,000 (10% of Rs12L), so only Rs1,20,000 qualifies; 50% of that is Rs60,000. Total 80G deduction = Rs50,000 + Rs60,000 = Rs1,10,000, cutting taxable income by Rs1.1 lakh in the old regime.
Want your 80G worked out and claimed correctly in your return?
File ITR with an expert →The Rs2,000 Cash Donation Rule
A cash donation above Rs2,000 to any 80G institution is fully disqualified — the entire donation loses the deduction, not just the excess. Give more than Rs2,000 only by banking channel.
| Payment mode | Amount | Eligible for 80G? |
|---|---|---|
| Cash | Up to Rs2,000 | Yes |
| Cash | Above Rs2,000 | No — whole gift disqualified |
| Account-payee cheque / DD | Any amount | Yes |
| NEFT / RTGS / IMPS | Any amount | Yes |
| UPI / net banking | Any amount | Yes |
| Credit / debit card | Any amount | Yes |
Donations in kind (clothes, food, goods) never qualify for 80G — only money donations do.
Documents Required to Claim 80G
From AY 2022-23 the deduction is allowed only if the institution files Form 10BD (statement of donations) and issues you a Form 10BE certificate. The department cross-checks your ITR claim against Form 10BD — a mismatch can get the deduction disallowed on processing.
- Form 10BE certificate from the institution
- Stamped donation receipt (name, PAN, amount, date)
- Institution PAN & 80G registration number
- 80G validity verified on incometax.gov.in
- Bank / UPI proof of the transfer
- Details entered in Schedule 80G of the ITR
Not sure if your donation shows in Form 10BD? Get your 80G claim verified.
Talk to a tax expert →Is 80G Available in the New Tax Regime?
No — Section 80G is an old-regime-only deduction. The new regime under Section 115BAC is now the default and disallows almost all Chapter VI-A deductions, including 80G. To claim your donation deduction you must opt for the old tax regime when filing your ITR.
Old regime — 80G allowed
- Full 80G deduction on eligible donations
- 80C, 80D, 80CCD, HRA and home-loan interest also available
- Higher slab rates but deductions offset them
- Best for donors and heavy investors
New regime — 80G blocked
- No 80G on donations
- Most Chapter VI-A deductions disallowed
- Only 80CCD(2) employer NPS & 80JJAA survive
- Rebate u/s 87A up to Rs12L taxable income
- Standard deduction Rs75,000 for salary
Do not chase 80G blindly. Compare your total old-regime tax (after 80G, 80C, 80D and 87A) against the new regime's lower slabs. For many taxpayers the new default is cheaper even after losing the 80G benefit — run both before you file.
Related deduction sections you may also be able to claim in the old regime: 80C investments, 80D health insurance, 80CCD NPS, Section 24 home-loan interest and the 87A rebate.
Frequently Asked Questions
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