Section 80G: How to Claim Tax Deduction on Donations in AY 2026-27

If you've donated to a charitable organization, a relief fund, or even your alma mater during FY 2025-26, you may be entitled to a tax deduction under Section 80G of the Income Tax Act. It's one of the more generous deduction provisions available — yet many taxpayers either forget to claim it or get confused by the different deduction rates and limits. This guide covers exactly how Section 80G works, which donations qualify, how much you can claim, and how to report it correctly in your ITR for AY 2026-27.

How Section 80G Works

Section 80G allows you to deduct donations made to specified funds, charitable institutions, and approved trusts from your gross total income. The deduction isn't a flat rate — it varies based on where you donate and how much you donate.

There are four categories of deductions under 80G:

The "adjusted gross total income" here means your gross total income minus long-term capital gains, short-term capital gains under Section 111A, deductions under Sections 80C to 80U (except 80G itself), and income on which no tax is payable.

Category A: 100% Deduction Without Any Limit

These are donations to government-notified funds where you get a full deduction with no ceiling. The major ones include:

• Prime Minister's National Relief Fund (PMNRF)
• PM CARES Fund
• National Defence Fund
• National Foundation for Communal Harmony
• Zila Sainik Board
• National Children's Fund
• Fund set up by a state government for medical relief to the poor
• National Sports Fund

Example

Deepa donates ₹1,00,000 to PM CARES Fund during FY 2025-26. She can claim the entire ₹1,00,000 as a deduction under Section 80G. If she's in the 30% tax bracket under the old regime, this saves her ₹31,200 in tax (including cess).

Category B: 50% Deduction Without Any Limit

A 50% deduction with no upper cap applies to donations to:

• Jawaharlal Nehru Memorial Fund
• Indira Gandhi Memorial Trust
• Rajiv Gandhi Foundation
• Prime Minister's Drought Relief Fund

These are less commonly used, but if you've contributed to any of them, you can claim half the donated amount without worrying about income-based limits.

Category C: 100% Deduction With 10% Income Limit

Donations to certain approved funds qualify for a 100% deduction, but the total deduction is capped at 10% of your adjusted gross total income. These include donations to:

• Government or approved local authority for promoting family planning
• Indian Olympic Association or its approved affiliated bodies

Category D: 50% Deduction With 10% Income Limit

This is the most common category and covers donations to:

• Any registered charitable trust or institution with a valid 80G registration
• Religious institutions if they also engage in charitable activities (purely religious donations don't qualify)
• Educational institutions of national eminence
• Housing development authorities for affordable housing

The 10% cap — how it works

For categories C and D, the total qualifying donation is capped at 10% of your adjusted gross total income. The deduction percentage (100% or 50%) is then applied to this capped amount.

Example

Sunil has an adjusted gross total income of ₹12,00,000. He donates ₹2,00,000 to a registered charitable trust (Category D).

• 10% of adjusted gross total income: ₹1,20,000
• Qualifying donation amount: ₹1,20,000 (capped, even though he gave ₹2,00,000)
• Deduction at 50%: ₹60,000

The remaining ₹80,000 of his donation doesn't get any tax benefit — it exceeds the 10% threshold.

Which Donations Do NOT Qualify Under 80G

Not every act of generosity gets a tax break. The following are explicitly excluded:

• Cash donations exceeding ₹2,000 — any single cash donation above ₹2,000 is not deductible, regardless of the recipient. Use bank transfer, cheque, or UPI for larger amounts
• Donations in kind — giving goods, food, clothes, or property doesn't qualify under 80G (though some may qualify under other provisions)
• Donations to political parties — these fall under Section 80GGC, not 80G
• Donations to foreign trusts — the recipient must be an Indian entity with valid 80G registration
• Donations to individuals — you can't claim 80G for giving money directly to a person, even if the purpose is charitable

The ₹2,000 Cash Limit — A Common Trip-Up

This is the rule that catches the most people off guard. If you donate ₹5,000 in cash to a temple trust that has 80G registration, you get zero deduction. The entire donation becomes ineligible, not just the amount above ₹2,000.

The fix is simple: always donate via bank transfer, UPI, or cheque if the amount is more than ₹2,000. Most registered trusts accept digital payments now, and the transaction trail also makes it easier to claim the deduction at filing time.

Documents You Need to Claim 80G

To successfully claim the deduction, keep these ready:

1. Donation receipt from the organization — must include the trust's name, address, PAN, and 80G registration number with validity period
2. 80G registration number of the trust — you can verify this on the income tax department's website
3. Proof of payment — bank statement, UPI confirmation, or cheque copy (for donations above ₹2,000)
4. Form 10BE — from AY 2023-24 onwards, organizations are required to file a Statement of Donations (Form 10BD) and issue Form 10BE to donors. This should reflect in your AIS/TIS

Checking your AIS

Before filing, cross-check your Annual Information Statement (AIS) to see if your donations are reflected. If the organization has filed Form 10BD, your donation will appear under the "Tax Deduction and Collection" section. If it's missing, contact the trust and ask them to file their statement — otherwise the income tax department may reject your deduction claim.

How to Report 80G Donations in Your ITR

When filing ITR-1 or ITR-2, you'll need to enter 80G donations in the dedicated deductions schedule. Here's what you'll fill in:

• Name of the donee (the trust or fund)
• PAN of the donee
• Address of the donee
• Amount of donation
• Qualifying amount (after applying the 10% cap, if applicable)
• Deduction amount (after applying 100% or 50% rate)

You can claim donations to multiple organizations — each is entered as a separate line item. 49Tax automatically categorizes your donations into the correct 80G bucket (100% unlimited, 50% unlimited, 100% with limit, or 50% with limit) and calculates the qualifying amount based on your income.

Stacking 80G With Other Deductions: A Practical Example

Let's see how 80G fits into a broader deduction strategy under the old regime.

Meera's profile:

• Gross total income: ₹15,00,000
• Tax regime: Old

Her deductions:

For the NGO donation (Category D):

• Adjusted gross total income (after 80C, 80CCD, 80D): ₹12,75,000
• 10% limit: ₹1,27,500 — Meera's ₹50,000 donation is well within this
• 50% deduction: ₹25,000

So her PM CARES donation yields a full ₹25,000 deduction, while her NGO donation yields ₹25,000 (50% of ₹50,000). Combined 80G benefit: ₹50,000 in reduced taxable income, saving her about ₹15,600 in tax at the 30% bracket.

80G and the New Tax Regime

Here's the critical point many taxpayers miss: Section 80G deductions are NOT available under the new tax regime. If you've opted for the new regime (which is the default from AY 2024-25 onwards), you cannot claim any donation-related deduction under 80G.

This is one of the factors worth weighing when choosing between the old and new regime. If you regularly donate significant amounts to eligible organizations, the 80G deduction could tilt the math in favour of the old regime — especially when stacked with 80C, 80CCD(1B), and 80D.

However, donations to certain government funds like PM CARES were briefly rumoured to be made available under the new regime in future budgets. As of AY 2026-27, no such change has been enacted — all 80G deductions remain exclusive to the old regime.

Verifying an Organisation's 80G Registration

Before donating with tax benefits in mind, verify that the organisation holds a valid 80G registration:

1. Visit the income tax e-filing portal
2. Go to Utilities → Approved Institutions under 80G
3. Search by the organisation's name or PAN
4. Check the validity period — registrations expire, and donations made after expiry don't qualify

If the trust can't produce a valid 80G certificate with a current validity period, your deduction claim will be rejected during processing, even if you have a receipt.

Common Mistakes to Avoid

1. Not keeping receipts for small donations Even a ₹500 UPI donation to a registered trust is claimable. But without the receipt showing the trust's 80G registration number, you can't report it in your ITR.

2. Confusing 80G with 80GGA Section 80GGA covers donations specifically for scientific research or rural development. If your donation is to a research institution, it may fall under 80GGA instead of 80G — the limits and rules differ.

3. Claiming donations under both regimes You can't claim 80G under the new regime. If you've switched regimes mid-year or are filing for the first time under the new regime, remove any 80G entries from your return.

4. Ignoring Form 10BE If the organization hasn't filed Form 10BD and issued you Form 10BE, your donation may not be verifiable by the income tax department. Follow up with the organization before the filing deadline.

Key Takeaway

Section 80G rewards charitable giving with meaningful tax savings — but only if you donate through the right channels (digital, not cash above ₹2,000), to verified organizations with current 80G registration, and file under the old tax regime. Before filing your AY 2026-27 return, gather your donation receipts, verify them against your AIS, and make sure each donation is categorized in the correct 80G bucket. The deduction won't claim itself.