
Donating to a noble cause not only brings joy and satisfaction but also offers income tax benefits under Section 80G of the Income Tax Act. This section encourages individuals and businesses to contribute to charitable organizations while receiving tax deductions on their donated amount.
In this comprehensive guide, we’ll dive deep into Section 80G, its applicability, types of eligible donations, how to claim deductions, and the list of institutions that qualify. Whether you’re a salaried professional, a freelancer, or a business owner, this article will help you understand how to make the most of your charitable contributions.
🔍 What is Section 80G?
Section 80G of the Income Tax Act, 1961, allows taxpayers to claim deductions on donations made to specified relief funds and charitable institutions. The primary aim of this provision is to promote philanthropy and encourage support for social causes through tax incentives.
✅ Eligibility for Section 80G Deduction
Eligible Category | Details |
---|---|
Individuals | Salaried or self-employed |
Hindu Undivided Families (HUFs) | Can claim deductions |
Companies & Firms | Eligible for deduction |
NRIs | Can also claim deductions for donations to Indian institutions |
🏛️ Types of Donations Eligible Under Section 80G
Donations under Section 80G are categorized based on the type of fund or institution and the percentage of deduction allowed. Broadly, they fall under four categories:
Category | Deduction Allowed | With/Without Qualifying Limit |
---|---|---|
Donations with 100% deduction | 100% | Without limit |
Donations with 50% deduction | 50% | Without limit |
Donations with 100% deduction | 100% | With qualifying limit |
Donations with 50% deduction | 50% | With qualifying limit |
Let’s explore these categories in detail.
📜 Donations Eligible for 100% Deduction Without Limit
These are donations made to national funds set up by the Central Government for national welfare or calamities.
Examples:
- Prime Minister’s National Relief Fund (PMNRF)
- National Defence Fund
- Clean Ganga Fund
- PM CARES Fund
- National Foundation for Communal Harmony
💡 Note: These donations do not have any upper limit restrictions and are eligible for a full 100% deduction.

📜 Donations Eligible for 50% Deduction Without Limit
Examples:
- Prime Minister’s Drought Relief Fund
- Jawaharlal Nehru Memorial Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
These funds allow 50% deduction of the donated amount without any ceiling or cap.
📜 Donations Eligible for 100% Deduction (With Limit)
These donations are made to government or local authority institutions promoting family planning.
Examples:
- Donations to the government for promoting family planning
- Donations by companies to Indian Olympic Associations or sports federations
⛔ Qualifying Limit: 10% of Adjusted Gross Total Income (GTI)
📜 Donations Eligible for 50% Deduction (With Limit)
This includes most charitable trusts, NGOs, and religious institutions that are approved under Section 80G.
Examples:
- NGOs engaged in education or medical relief
- Religious institutions (partially approved)
- Local NGOs supporting underprivileged children
🔒 Limit: Deduction is capped at 50% of 10% of your adjusted GTI.
🧮 How to Calculate 80G Deduction?
Here’s a step-by-step method:
- Calculate Gross Total Income (GTI)
- Remove deductions under Sections 80C to 80U (except 80G)
- Compute 10% of adjusted GTI
- Compare donation amount with limit
- Apply 50% or 100% deduction rule as per the category
📊 Sample Calculation
Particulars | Amount (INR) |
---|---|
Gross Total Income | ₹10,00,000 |
Less: Deductions under 80C to 80U (except 80G) | ₹1,50,000 |
Adjusted GTI | ₹8,50,000 |
10% of Adjusted GTI | ₹85,000 |
Eligible Donation (say to NGO, 50% limit) | ₹1,00,000 |
Maximum deduction allowed | ₹42,500 (50% of ₹85,000) |
📋 Documents Required to Claim 80G Deduction
To claim deduction under Section 80G, make sure you collect and maintain the following documents:
Document | Purpose |
---|---|
Donation Receipt | Must contain PAN of the trust/NGO and name |
Form 58 | Required for 100% deduction with limit cases |
Trust Registration Copy | Ensure trust is registered under 80G |
Payment Mode Proof | UPI/Net Banking/Cheque/DD (Cash only up to ₹2,000) |
⚠️ Key Conditions & Restrictions
- Cash Donations > ₹2,000 are not allowed for deduction.
- Donations must be made to registered and approved institutions under 80G.
- Donations in kind (like clothes, food, medicines) do not qualify for 80G deduction.
- Ensure the NGO or trust has valid 80G registration issued by the Income Tax Department.
🏦 How to Check if a Trust/NGO is 80G Registered?
You can verify the 80G registration status of an institution by:
- Visiting Income Tax Exemptions Portal
- Navigating to “Search for Approved Institutions”
- Searching using PAN number or name of the institution
Always donate to recognized and registered NGOs to ensure your contribution qualifies for tax benefits.
🧾 How to Claim 80G Deduction While Filing ITR?
Steps to claim deduction in ITR:
- Select the correct ITR form based on your income type
- Go to the Deductions and Exemptions section
- Choose Section 80G
- Enter details of donation:
- Name of Donee
- PAN of Donee
- Amount donated
- Deduction eligible (50% or 100%)
- Submit donation receipt and other proofs, if asked during scrutiny
📌 Benefits of Donating Under Section 80G
Benefit | Description |
---|---|
Lower Tax Liability | Reduces taxable income |
Promotes Social Good | Supports charities and disaster relief |
Encourages Corporate Social Responsibility | Businesses can contribute and claim benefits |
Recognition | Many NGOs offer donor acknowledgments |
🌱 Popular Funds & Institutions for 80G Donation
Fund/Institution | Deduction Rate | Notes |
---|---|---|
PM CARES Fund | 100% | Without limit |
National Defence Fund | 100% | Without limit |
CRY (Child Rights and You) | 50% | With limit |
GiveIndia | 50% | With limit |
Indian Red Cross Society | 50% | With limit |
Save The Children | 50% | With limit |
💬 FAQs on Section 80G Donations
🔹 Can NRIs claim 80G deductions?
Yes, NRIs can claim deduction for donations made to eligible Indian institutions.
🔹 Is Aadhaar mandatory to claim 80G deduction?
No, Aadhaar is not mandatory. PAN of the donee and payment proof are essential.
🔹 Can I donate in cash and claim full deduction?
No. Only cash donations up to ₹2,000 are allowed. Beyond that, use digital modes.
🔹 Are foreign NGOs eligible under Section 80G?
No. Only Indian NGOs registered under Section 80G qualify.
📝 Conclusion
Section 80G serves as a bridge between taxpayers and social causes. It motivates individuals and corporates alike to extend support to institutions working toward the betterment of society. While doing so, it rewards you with significant tax deductions — a win-win for everyone involved.
Before donating, ensure:
- The organization is 80G registered
- You collect proper documentation
- You understand the limits and categories
Supporting a cause not only changes lives but also offers a legitimate way to save on taxes. So next time you think of donations, remember – you’re not just giving, you’re investing in a better world and reducing your tax burden.