Section 80G — Tax Deduction on Donations FY 2025-26

Updated: 3 June 2026 | Income-tax Act 2025 | Old Regime Only

Section 80G allows a tax deduction on donations to approved charitable institutions and government funds. Deductions range from 50% to 100% of the donated amount, with some categories capped at 10% of Adjusted Gross Income. Available only under the old tax regime. Cash donations above ₹2,000 per transaction do not qualify.

100%

Deduction on PM Relief Fund & PM Cares Fund
Donations to PM National Relief Fund, PM Cares Fund, and National Defence Fund qualify for 100% deduction with no ceiling — every rupee donated reduces your taxable income by one rupee. No AGI cap applies.

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Not available in New Tax Regime: Section 80G is an old-regime-only benefit. If you have chosen the default new regime, donations do not reduce your taxable income. Switch to old regime while filing your ITR to claim this deduction.

Categories of 80G Donations — Deduction & Limits

All 80G donations fall into four categories. The deduction percentage and whether an AGI cap applies depends on the category of the recipient fund or institution. Adjusted Gross Income (AGI) = Gross Total Income minus LTCG, STCG, and all other Chapter VI-A deductions (excluding 80G).

Category	Deduction %	AGI Cap	Examples
Schedule I — National Funds	100%	No limit	PM National Relief Fund, PM Cares Fund, National Defence Fund, National Sports Fund, National Cultural Fund, CM Distress Relief Fund
Schedule II — Memorial Funds	50%	No limit	Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation
Approved institutions (100%)	100%	10% of AGI	Select charitable trusts approved by CBDT for 100% deduction — verify on Income Tax portal
Approved trusts / NGOs (50%)	50%	10% of AGI	Most registered NGOs, charitable trusts, religious institutions, hospitals, and educational bodies with valid 80G certificate

80G Deduction — Worked Calculation

Suppose Adjusted Gross Income (AGI) is ₹12,00,000. You make two donations:

Donation	Amount (₹)	Category	Qualifying Amount	Deduction (₹)
PM Cares Fund	50,000	100%, no cap	₹50,000	50,000
Local NGO (50% with cap)	2,00,000	50%, 10% AGI cap	₹1,20,000 (10% of ₹12L)	60,000
Total 80G Deduction	2,50,000	—	—	1,10,000

For the NGO: donation ₹2L exceeds 10% AGI cap of ₹1.2L, so qualifying amount = ₹1.2L; 50% of that = ₹60,000.

Cash Donation Rules — Payment Mode Eligibility

A critical restriction: cash donations above ₹2,000 to any 80G-approved entity are fully disqualified — the entire donation loses eligibility, not just the excess.

Payment Mode	Amount	Eligible for 80G?
Cash	Up to ₹2,000	Yes
Cash	Above ₹2,000	No — entire donation disqualified
Account payee cheque / DD	Any amount	Yes
NEFT / RTGS / IMPS	Any amount	Yes
UPI / Mobile wallet (linked to bank)	Any amount	Yes
Credit card / Debit card	Any amount	Yes

Documents Required to Claim 80G

From AY 2021-22 (Tax Year 2021-22 onwards), the deduction is allowed only if the donee institution files Form 10BD (statement of donations) with the Income Tax Department. The institution must issue a Form 10BE certificate to each donor. Required documents:

1. Form 10BE from the institution (unique donation reference number). 2. Official donation receipt with institution PAN, 80G registration number, amount and date. 3. Verify 80G validity at incometax.gov.in — search by institution PAN or registration number. 4. Bank transaction proof for online/cheque payments.

Frequently Asked Questions

What is the 80G deduction limit for FY 2025-26?

The 80G deduction limit depends on the category of the donation. For funds like PM National Relief Fund, PM Cares Fund, and National Defence Fund: 100% deduction with NO upper limit. For most approved charitable trusts and NGOs: 50% deduction, subject to a cap of 10% of your Adjusted Gross Income (AGI). For example, if your AGI is ₹10 lakh, the maximum qualifying donation for the 10%-cap category is ₹1 lakh, giving a deduction of ₹50,000.

Is Section 80G available in the new tax regime?

No. Section 80G deductions are NOT available if you opt for the new tax regime. The new regime (now the default under the Income-tax Act 2025) offers lower slab rates but disallows most deductions including 80G, 80C, and HRA. To claim 80G, you must opt for the old tax regime while filing your ITR. Salaried individuals can switch annually; taxpayers with business income face restrictions on switching back.

What documents are required to claim 80G deduction?

To claim Section 80G: (1) 80G certificate from the institution — verify its validity on the Income Tax portal. (2) Official receipt showing donor name, PAN, amount, date, institution name, and 80G registration number. (3) Form 10BE certificate issued by the institution (mandatory from AY 2021-22 onwards, requires the institution to file Form 10BD). Cash donations above ₹2,000 do not qualify — must use cheque, DD, or online transfer.

What is the maximum cash donation allowed under Section 80G?

Under Section 80G, cash donations above ₹2,000 per transaction do NOT qualify for tax deduction. Any donation of ₹2,001 or more must be made via account payee cheque, demand draft, or online transfer (NEFT/RTGS/UPI/card) to be eligible. This applies regardless of the fund category. Small cash donations of ₹2,000 or less remain eligible. This rule was introduced to promote transparency in charitable giving.

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