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Guide · Salary & Deductions

Section 80G Deduction —
100% or 50% on Donations?

How much tax deduction you get on donations under Section 80G, the four fund categories, the 10% adjusted-income cap, the Rs2,000 cash rule, Form 10BE, and why it is an old-regime-only benefit.

TaxClue Editorial Desk Updated 18 August 2026 5 min read 16 FAQs answered
Updated for AY 2026-27 CA reviewed Old regime only
Quick Answer

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.

PM / national funds 100%
Most trusts & NGOs 50%
Qualifying-limit cap 10% AGTI
Cash above Rs2,000 Not allowed
At a glance

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).

CategoryDeduction10% CapExamples
National funds (100%, no limit)100%No capPM 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 capJawaharlal Nehru Memorial Fund, PM Drought Relief Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation
Approved institutions (100%, with limit)100%10% AGTIGovt/local-authority family-planning promotion; Indian Olympic Association & select notified bodies
Approved trusts / NGOs (50%, with limit)50%10% AGTIMost 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.

The 10% cap bites hardest on big donors

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.

Worked example

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

DonationRs50,000
Qualifying amountRs50,000
Deduction @ 100%Rs50,000
DeductionRs50,000

50% Local NGO — 10% AGTI cap

DonationRs2,00,000
10% AGTI capRs1,20,000
Deduction @ 50% of capRs60,000
DeductionRs60,000

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.

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Payment mode

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 modeAmountEligible for 80G?
CashUp to Rs2,000Yes
CashAbove Rs2,000No — whole gift disqualified
Account-payee cheque / DDAny amountYes
NEFT / RTGS / IMPSAny amountYes
UPI / net bankingAny amountYes
Credit / debit cardAny amountYes

Donations in kind (clothes, food, goods) never qualify for 80G — only money donations do.

Proof to keep

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 →
Old vs new regime

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

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
vs
New

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
TaxClue Insight

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.

Government sourcesSection 80G text & institution search: incometax.gov.in · Form 10BD / 10BE: donee reporting under Rule 18AB, effective AY 2022-23 · Cash limit Rs2,000: Section 80G(5D), Income-tax Act 1961 · New-regime restriction: Section 115BAC (default from AY 2024-25); 80G re-codified as Section 133 under the Income-tax Act, 2025
People also ask

Frequently Asked Questions

Limits & Categories
What is the 80G deduction limit for FY 2025-26?
It depends on the fund. National funds like the PM National Relief Fund, PM Cares Fund and National Defence Fund give a 100% deduction with no upper limit. Most approved trusts and NGOs give a 50% deduction, but the qualifying donation is capped at 10% of your adjusted gross total income (AGTI). For example, if AGTI is Rs10 lakh, the maximum qualifying donation in the 10%-cap category is Rs1 lakh, giving a deduction of Rs50,000.
Is 80G a 50% or 100% deduction?
Both exist. Donations to notified national/government funds (PM National Relief Fund, PM Cares, National Defence Fund, Swachh Bharat Kosh, Clean Ganga Fund) get 100%. Most registered charitable trusts, NGOs, temples, hospitals and educational institutions with a valid 80G certificate get 50%. A few approved institutions get 100% but with the 10% cap. Always check the fund's category before assuming the rate.
What is the 10% adjusted gross total income cap?
For the two "with qualifying limit" categories, only donations up to 10% of your adjusted gross total income (AGTI) qualify. AGTI = gross total income minus long-term capital gains, special-rate short-term gains and all other Chapter VI-A deductions (except 80G). Any donation beyond 10% of AGTI gets no deduction and is not carried forward. Donations to no-limit national funds are outside this cap.
How is adjusted gross total income calculated for 80G?
Start with gross total income, then subtract: long-term capital gains, short-term capital gains taxed at special rates (like 111A), any income taxed at special rates, and all other Chapter VI-A deductions (80C, 80D, 80CCD, etc.) except 80G. The 10% qualifying-limit cap is applied on this adjusted figure, not on your gross salary.
New vs Old Regime
Is Section 80G available in the new tax regime?
No. Section 80G is not available under the new tax regime, which is the default from AY 2024-25. The new regime offers lower slab rates but disallows almost all Chapter VI-A deductions including 80G, 80C and 80D. To claim 80G you must opt for the old regime while filing your ITR. Salaried individuals can switch each year; those with business income face restrictions on switching back.
Should I choose the old regime just to claim 80G?
Only if it saves overall tax. Compute your total tax under the old regime (after 80G, 80C, 80D, home-loan interest and the 87A rebate) and compare it with the new regime's lower slabs plus the Rs75,000 standard deduction and 87A rebate up to Rs12 lakh taxable income. For many taxpayers the new regime is still cheaper even after losing 80G, so run both before deciding.
Cash & Payment
What is the maximum cash donation allowed under 80G?
Cash donations above Rs2,000 per transaction do not qualify — and the entire donation is disqualified, not just the excess. Any gift of Rs2,001 or more must be made by account-payee cheque, demand draft, NEFT/RTGS/IMPS, UPI, net banking or card to be eligible. Cash gifts of Rs2,000 or less remain eligible. The rule promotes transparency in charitable giving.
Can I claim 80G on donations in kind, like clothes or food?
No. Section 80G applies only to donations of money. Donations in kind — clothes, food, medicines, books, goods or services — do not qualify for any 80G deduction, however valuable. Only monetary donations paid by an eligible mode (banking channel above Rs2,000) are deductible.
Are UPI and card donations eligible for 80G?
Yes. Donations made through UPI, net banking, NEFT/RTGS/IMPS, credit or debit card, cheque or demand draft are all eligible for any amount, because they leave a banking trail. The Rs2,000 ceiling applies only to cash donations. So a Rs10,000 donation by UPI is fully eligible, while the same amount in cash is not.
Documents & Claim
What documents are required to claim the 80G deduction?
You need: (1) a Form 10BE certificate issued by the institution, which is mandatory since AY 2022-23 and requires the institution to file Form 10BD; (2) an official receipt showing the donor name, PAN, amount, date, institution name and 80G registration number; and (3) bank/UPI proof of payment. Verify the institution's 80G validity on incometax.gov.in before claiming.
What is Form 10BE and why does it matter?
Form 10BE is the donation certificate the recipient institution issues to you after filing Form 10BD (its statement of donations) with the department. Since AY 2022-23 your 80G claim in the ITR is cross-verified against Form 10BD. If the institution has not reported your donation or the amounts do not match, your deduction can be disallowed during processing, so obtain and check Form 10BE before filing.
How do I report 80G donations in my ITR?
Enter each donation in Schedule 80G of your ITR, giving the donee name, PAN, address, the donation amount and its category (100% or 50%, with or without limit). The utility computes the eligible deduction after applying the 10% cap where relevant. Ensure the figures match the Form 10BE certificate so the claim is not flagged on processing.
Eligibility & Scope
Who can claim a deduction under Section 80G?
Any taxpayer — individuals, HUFs, companies, firms and other assessees — can claim 80G on eligible donations, provided they opt for the old tax regime (companies use the applicable regime rules). There is no requirement that the donor be salaried. The only conditions are a monetary donation to an approved institution, an eligible payment mode and valid documentation.
Can NRIs claim Section 80G on donations to Indian charities?
Yes. A non-resident who has taxable income in India and files an Indian ITR under the old regime can claim 80G on eligible donations to approved Indian institutions, subject to the same rules — money donation, Rs2,000 cash cap, valid 80G registration and Form 10BE. The deduction reduces the NRI's India-taxable income.
Is donation to a temple, church or mosque eligible for 80G?
Only if that religious institution holds a valid 80G registration and is approved by the Income Tax Department. Many religious trusts do have 80G approval and give a 50% deduction (with the 10% cap). Verify the institution's live 80G status on incometax.gov.in and obtain a proper receipt and Form 10BE; a donation to an unregistered place of worship is not deductible.
What is the difference between 80G and 80GGA or 80GGC?
Section 80G covers general donations to charitable funds and institutions. Section 80GGA covers donations for scientific research or rural development (mainly for those without business income). Section 80GGC covers donations to political parties or an electoral trust, deductible at 100% with no cash allowed. They are separate deductions with their own rules and are also largely restricted to the old regime.
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