Section 80G of Income Tax Act gives a deduction for donations to approved funds and charitable institutions, at either 100% or 50% of the amount given, and for some recipients only up to 10% of your adjusted gross total income. Cash donations above ₹2,000 do not qualify.
Which of the four slots a gift falls into depends on who receives it, so the receipt matters as much as the amount. The rules here apply to FY 2025-26 under the 1961 Act and only in the old regime. From tax year 2026-27 the same deduction sits in section 133 of the 2025 Act. See how it fits with other claims on the deductions list.
Quick facts
Deduction rate
100% or 50% of the donationQualifying limit
10% of adjusted gross total income, for some recipientsCash limit
No deduction for cash above ₹2,000Donations in kind
Not allowed, such as clothes or foodProof
Form 10BE certificate from the trustRegime
Old regime onlyUnder the 2025 Act
Section 133
Section 80G of Income Tax Act: the four categories
| Category | Examples of recipients | Deduction |
|---|---|---|
| 100% with no limit | National Defence Fund, Prime Minister's National Relief Fund, PM CARES Fund, National Foundation for Communal Harmony | Full donation |
| 50% with no limit | Prime Minister's Drought Relief Fund and a few other listed funds | Half the donation |
| 100% within the 10% limit | Government or local authority for promoting family planning | Full donation, but only up to the limit |
| 50% within the 10% limit | Most registered charitable trusts and NGOs with 80G approval, temples and mosques notified for repairs | Half of the donation, after applying the limit |
The trust's 80G approval number appears on its receipt. A donation to an unapproved trust, however worthy, earns no deduction.
The 10% qualifying limit explained
For the last two categories, the eligible donation cannot exceed 10% of your adjusted gross total income. Adjusted means gross total income less:
- all other Chapter VI-A deductions, such as 80C and 80D, but not 80G itself;
- long-term capital gains;
- short-term gains on listed shares taxed under section 111A;
- certain income of non-residents taxed at special rates.
Apply the limit first, then the 50% rate. The order matters, as the example below shows.
How the claim adds up: a worked example
Facts. Arjun opts for the old regime in FY 2025-26. Gross total income is ₹9,00,000 with no capital gains, and he claims ₹1,50,000 under 80C. He donates ₹20,000 to the Prime Minister's National Relief Fund by UPI and ₹1,00,000 by cheque to a registered charitable trust with 80G approval.
Adjusted gross total income. ₹9,00,000 less ₹1,50,000 = ₹7,50,000. The 10% limit is ₹75,000.
Relief fund. 100% with no limit: ₹20,000.
Trust. Donation ₹1,00,000, but only ₹75,000 is within the limit. 50% of ₹75,000 = ₹37,500.
Total 80G deduction: ₹57,500. Taxable income becomes ₹9,00,000 less ₹1,50,000 less ₹57,500 = ₹6,92,500.
Documents and the Form 10BE certificate
Every approved trust must file a statement of donations, Form 10BD, and issue each donor a certificate in Form 10BE. The donation should then show against your PAN. When you file, the 80G schedule asks for the donee's name, address, PAN and the amounts paid in cash and by other modes. Give your PAN to the trust when you donate; without it the trust cannot report your gift.
- Ask the trust for Form 10BE after it files its statement for the year.
- Once logged in on the e-filing portal, begin the return and choose the old regime.
- Fill the 80G schedule, choosing the right category for each donation.
- Check that the computed deduction matches your own working before submitting.
80G income tax rules for employees and businesses
Salaried donors can claim 80G in the return even if the employer did not allow it in TDS. Where the employer deducts a donation from salary and pays it to an approved fund, it is usually shown in Form 16, which then serves as the proof. A business can claim 80G too. Companies spending on social responsibility under company law face extra conditions, so check those before treating the spend as a donation.
Gifts to a political party are not 80G. They come under a separate section with its own rules.
Section 80G under the new regime and the 2025 Act
| Item | Under the 1961 Act (FY 2025-26) | Under the 2025 Act (tax year 2026-27) |
|---|---|---|
| Section | 80G | 133 |
| New regime | Not allowed | Not allowed |
| Proof | Form 10BE | Certificate from the institution under the new rules |
Anyone on the new regime gets no tax benefit from donations. Compare both regimes on the old vs new calculator before choosing.
80G claims that fail and how to avoid it
| Problem | How to avoid it |
|---|---|
| ₹5,000 dropped in a cash box | Give by cheque, card, UPI or bank transfer; cash above ₹2,000 is not allowed |
| Trust has no 80G approval | Check the approval number on the receipt before giving |
| Claiming 100% for a normal charity | Most trusts are 50% within the 10% limit |
| Donating food or clothes and claiming their value | Only money qualifies |
This guide to donation relief is general reading, not a view on your return. Approvals and limits change, so verify them through the official portal or a qualified CA.
Sources we checked
- Income-tax Act, 1961, section 80G
- Income-tax Rules, 1962, rule 18AB
- Income-tax Act, 2025, section 133
Frequently asked questions
What is 80G income tax deduction?
It is the deduction for donations to approved funds and charities. Depending on the recipient you deduct 100% or 50%, and for some recipients the donation is capped at 10% of adjusted gross total income.
Can I claim 80 G income tax relief on a cash donation?
Only up to ₹2,000 in cash. Any cash donation above that gets no deduction, so give by a banking mode.
Does the new regime allow an 80G claim?
It does not. Donations cut tax only for those who choose the old regime for FY 2025-26, and the new regime under the 2025 Act keeps that bar.
What is Form 10BE?
It is the donation certificate an approved trust issues after filing its statement of donations. It shows your PAN, the amount and the trust's approval details.
What section replaces 80G under the 2025 Act?
From tax year 2026-27, donations are claimed under section 133 of the new Act.