Section 80G Deduction for Donations — Complete Guide (2026)

Updated: 3 June 2026 | Income-tax Act 2025 (formerly IT Act 1961) · Section 80G

Section 80G allows individuals, HUFs, companies and firms to deduct donations from taxable income — at 100% or 50%, with or without a qualifying limit of 10% of adjusted gross income. Donations to PM Relief Fund and PM CARES qualify for 100% deduction even under the new tax regime. Form 10BE from the recipient is mandatory to claim the deduction.

100%

Full deduction for PM National Relief Fund & PM CARES
No qualifying limit applies — every rupee donated reduces taxable income by one rupee. Available in both old and new tax regimes.

Section 80G Deduction Categories at a Glance

Category	Deduction Rate	Qualifying Limit	Key Recipients
Cat 1 — Government Funds	100%	No limit	PM National Relief Fund, National Defence Fund, PM CARES Fund, Swachh Bharat Kosh, Clean Ganga Fund, National Children Fund
Cat 2 — Approved Institutions	100%	10% of Adjusted Gross Income	Approved universities, IIT development funds, approved research institutions
Cat 3 — Memorial Trusts	50%	No limit	Jawaharlal Nehru Memorial Fund, Prime Minister Drought Relief Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation
Cat 4 — Other Approved Bodies	50%	10% of Adjusted Gross Income	Approved charitable trusts, NGOs, hospitals, religious institutions, political parties (80GGB/GGC)

How to Calculate the Qualifying Limit (10% Cap)

For categories 2 and 4, the deductible donation is the lower of: (a) the actual donation amount at the applicable rate (100% or 50%), or (b) 10% of adjusted gross income.

Adjusted Gross Income = Gross Total Income minus all deductions under Chapter VI-A except Section 80G itself.

Example Calculation	Amount (Rs.)
Gross Total Income	10,00,000
Deduction under 80C	(1,50,000)
Adjusted Gross Income	8,50,000
10% qualifying limit	85,000
Donation to approved NGO (Cat 4)	2,00,000
50% of donation	1,00,000
Deduction allowed (lower of Rs.1,00,000 or Rs.85,000)	85,000

Section 80G and the New Tax Regime

Donation Type	Old Tax Regime	New Tax Regime (115BAC)
PM National Relief Fund	100% — No limit	Allowed (100% — No limit)
PM CARES Fund	100% — No limit	Allowed (100% — No limit)
National Defence Fund	100% — No limit	Allowed (100% — No limit)
Swachh Bharat Kosh / Clean Ganga	100% — No limit	Allowed (100% — No limit)
Approved charitable trust / NGO	50% — 10% limit	NOT available
Approved universities / IIT funds	100% — 10% limit	NOT available
Religious institutions	50% — 10% limit	NOT available
Political parties (80GGB/GGC)	100% — No limit	NOT available

Form 10BE and Form 10BD — Mandatory Compliance

Form	Filed By	Due Date	Purpose
Form 10BD	Approved institution (recipient)	31 May of following FY	Annual statement of donations received — filed with Income Tax Dept
Form 10BE	Approved institution (issued to donor)	31 May of following FY	Donation certificate — donor quotes this in ITR to claim 80G

Without a valid Form 10BE, the Income Tax Department may disallow the 80G deduction during scrutiny assessment, even if the donation is genuine and the receipt is available. Always verify that your donation partner has filed Form 10BD before claiming the deduction in your ITR.

Eligible and Ineligible Donations — Quick Reference

Type of Donation	Eligible for 80G?	Reason
Online / cheque / DD / UPI to approved fund	Yes	Specified mode; approved recipient
Cash donation up to Rs.2,000	Yes	Cash permitted up to Rs.2,000 per recipient
Cash donation above Rs.2,000	No	Section 80G(5D) bars cash above Rs.2,000
Donation in kind (clothes, food, medicines)	No	Only monetary donations qualify
Donation to unapproved NGO	No	80G approval is mandatory for the recipient
Donation to foreign charity	No	Must be Indian registered institution
Donation where donor receives a benefit	Partial	Deduction = donation minus fair market value of benefit received
Corpus donation to temple / religious place	50% with limit	Subject to institution holding valid 80G approval

How to Claim Section 80G in ITR

Obtain Form 10BE from the donee institution (available after 31 May of the following FY).
In your ITR (any form — ITR-1 to ITR-4 for individuals), go to Schedule VI-A deductions.
Under Section 80G, enter: donation amount, name of fund / institution, PAN of institution, and Form 10BE details.
The pre-filled ITR-1 / ITR-2 may auto-populate 80G entries from Form 10BD data. Verify accuracy.
Compute the qualifying limit (10% of adjusted gross income) for Cat 2 and Cat 4 donations.
Enter the deductible amount (not the raw donation). The portal will compute tax savings.

Frequently Asked Questions

What is Section 80G and who can claim the deduction?

Section 80G of the Income-tax Act 1961 (now consolidated as the Income-tax Act 2025 effective FY 2026-27) allows taxpayers to claim a deduction from their gross total income for donations made to specified funds, trusts, and charitable institutions approved by the Income Tax Department. The deduction is available to individuals, Hindu Undivided Families (HUFs), companies, partnership firms, and any other person who is an assessee under the Income Tax Act. Donations can be made in cash (up to Rs.2,000 — cash donations above Rs.2,000 are not eligible), by cheque, demand draft, online banking, UPI, NEFT, RTGS, or any other electronic mode. NRI individuals can claim 80G for donations to eligible Indian institutions, provided they have taxable income in India against which the deduction can be set off. However, certain categories of recipients are available only for resident Indian donors. The deduction is not available to persons with no taxable income in India. A critical requirement is that the donor must obtain Form 10BE — a donation certificate issued by the recipient institution — and the institution must submit Form 10BD (annual statement of donations) to the Income Tax Department. Without Form 10BE, the deduction claim can be disallowed during scrutiny. The deduction reduces taxable income, resulting in tax savings at your applicable slab rate or corporate tax rate.

What are the different deduction rates under Section 80G — 100% vs 50%, with and without limit?

Section 80G deductions fall into four categories based on the deduction percentage and whether a qualifying limit (10% of adjusted gross income) applies. Category 1: 100% deduction without any qualifying limit — this applies to donations to the Prime Minister National Relief Fund, National Defence Fund, PM CARES Fund, Swachh Bharat Kosh, Clean Ganga Fund, National Children Fund, certain state government relief funds, and a few other central government funds. Every rupee donated here is fully deductible. Category 2: 100% deduction subject to the 10% qualifying limit — applies to approved universities, research institutions, and IIT development funds. Category 3: 50% deduction without qualifying limit — applies to Jawaharlal Nehru Memorial Fund, Prime Minister Drought Relief Fund, Indira Gandhi Memorial Trust, and Rajiv Gandhi Foundation. Half the donation is deductible with no ceiling. Category 4: 50% deduction subject to the 10% qualifying limit — the most common category, covering most approved charitable trusts, religious institutions, hospitals, and political parties under Sections 80GGB and 80GGC. For categories 2 and 4, the qualifying limit is 10% of adjusted gross income (gross total income minus all other deductions except 80G). Deduction is limited to whichever is lower: 50% or 100% of the donated amount, or 10% of adjusted gross income for the respective qualifying categories.

Is Section 80G available under the new tax regime?

Yes, Section 80G is one of the very few deductions that remains available under the new tax regime (Section 115BAC) introduced from FY 2020-21. Most deductions under Chapter VI-A were eliminated under the new regime — notably Section 80C, 80D, 80E, HRA exemption, LTA, and standard deduction for certain categories — but Section 80G for donations to notified funds such as the PM National Relief Fund, National Defence Fund, PM CARES Fund, Swachh Bharat Kosh, and Clean Ganga Fund was specifically retained. However, the 80G deduction under the new regime is restricted to only the central government-notified funds that qualify for 100% deduction without any limit. Donations to private charitable trusts, approved hospitals, religious institutions, and other organisations that fall in the 50%-with-limit category are NOT deductible under the new regime. Taxpayers choosing the old regime can claim 80G for all four categories as described above. Since the new regime is now the default regime from FY 2023-24, taxpayers who wish to claim 80G deductions beyond the restricted government-fund category must explicitly opt out of the new regime and opt into the old regime while filing their Income Tax Return. This choice must be made by the due date of filing the ITR. Employees must inform their employer of their regime choice at the start of the financial year for correct TDS computation.

What is Form 10BE and Form 10BD — are they mandatory for claiming Section 80G?

Form 10BD and Form 10BE are mandatory compliance requirements introduced from FY 2021-22 onwards and are essential for the donor to be able to claim Section 80G deductions under the current rules. Form 10BD is the Statement of Donations that must be filed by the approved institution or fund (the recipient of the donation) with the Income Tax Department on or before 31 May following the financial year in which donations were received. It contains details of each donor — name, PAN or Aadhaar, donation amount, and mode. Form 10BE is the Donation Certificate that the institution must issue to each donor based on the data filed in Form 10BD. The donor must quote the details from Form 10BE while claiming the 80G deduction in their Income Tax Return. The deduction is auto-populated in the ITR based on data from Form 10BD filed by the institution. If the institution fails to file Form 10BD or does not issue Form 10BE, the donor cannot claim the deduction even if the donation is genuine and the receipt is held. This is a significant compliance risk for donors to smaller NGOs and trusts who may not be aware of these requirements. Donors should always verify: (1) that the institution is currently approved under Section 80G (check Income Tax portal or DARPAN registration), (2) that the institution has filed Form 10BD for the year, and (3) obtain Form 10BE before filing their ITR.

What donations are NOT eligible for Section 80G deduction?

Several types of donations are explicitly excluded from Section 80G benefits despite being charitable in nature. Cash donations exceeding Rs.2,000 to any single recipient are ineligible — all such donations must be made by non-cash modes to qualify. Donations made to political parties for elections are covered separately under Section 80GGC (individuals) and 80GGB (companies) and have their own conditions; they do not go through Section 80G. Donations in kind — such as donating clothes, food, medicines, or equipment — are not eligible for Section 80G; only monetary donations qualify. Donations to unapproved trusts or institutions are ineligible — the recipient must hold a valid 80G approval certificate issued by the Principal Commissioner of Income Tax. Approval certificates expire and must be renewed; donors must verify current validity on the Income Tax portal. Donations to foreign organisations, even if charitable, are not covered under Section 80G. Corpus donations to certain institutions may be restricted in deductibility based on the specific approval conditions of the institution. Donations by taxpayers with no Indian taxable income cannot generate any tax benefit since the deduction only reduces taxable income. Additionally, donations for which the donor receives any material benefit in return — such as purchasing goods from a charity shop or paying for a charity event with benefits — are not considered pure donations and the deductible amount is limited to the excess over the fair market value of the benefit received.

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