In this article
What is Section 80G?
Section 80G allows individuals, HUFs, companies, and firms to claim tax deduction for donations made to specified charitable institutions and government funds. It encourages philanthropy by reducing the effective cost of donations.
Like 80C and 80D, 80G is available ONLY under old tax regime, not new.
Four categories of donations
Category I — 100% deduction without qualifying limit:
- Prime Minister's National Relief Fund (PMNRF)
- PM CARES Fund
- National Defence Fund
- National Foundation for Communal Harmony
- National Children's Fund
- Africa Fund
- State Government Fund for medical relief to poor
- Several specified university and educational institutions
Category II — 50% deduction without qualifying limit:
- Jawaharlal Nehru Memorial Fund
- PM's Drought Relief Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
Categories III and IV — With qualifying limit
For Category III (100% with qualifying limit) and IV (50% with qualifying limit), donations are eligible only up to 10% of 'adjusted gross total income':
Adjusted GTI = Gross Total Income — Long Term Capital Gains — Short Term Capital Gains u/s 111A — Income u/s 115A/AB/AC/ACA/AD — Deductions under Sections 80C to 80U (excluding 80G)
Category III examples (100% within 10% limit):
- Family planning programs notified by government
- Indian Olympic Association
Category IV examples (50% within 10% limit):
- Most registered NGOs and charitable trusts (with 80G certificate)
- Religious institutions for renovation/repair
- Most local NGOs you donate to
How to claim deduction
- Donate to an eligible institution (check 80G registration on Income Tax portal)
- Get donation receipt with:
- Name and PAN of donor
- Name and address of donee
- Donee's 80G registration number and date
- Donation amount
- Mode of payment (cheque/NEFT/UPI — not cash above ₹2,000)
- In ITR, fill Schedule 80G:
- Category of donation
- Donee's name, PAN, donation amount
- Eligible deduction amount
- Keep receipt for at least 7 years (in case of scrutiny)
Cash donation limit
From AY 2017-18, cash donations above ₹2,000 do NOT qualify for 80G deduction. Pay by:
- Cheque (signed in donor's name)
- Demand Draft
- NEFT / RTGS / IMPS
- UPI / digital wallet
- Credit / debit card
Cash donations up to ₹2,000 still qualify. For larger donations, always use bank channels.
Practical example
Mr. Kumar's income for FY 2025-26: ₹15 lakh. Donations:
- PM CARES Fund: ₹50,000 (Cat I — 100% eligible) → ₹50,000 deduction
- Local NGO (with 80G): ₹30,000 (Cat IV — 50% within 10% of AGTI)
- Adjusted GTI ≈ ₹15 lakh; 10% = ₹1.5 lakh limit
- NGO donation eligible: ₹30,000 (within ₹1.5 lakh limit)
- Deduction = 50% of ₹30,000 = ₹15,000
Total 80G deduction: ₹50,000 + ₹15,000 = ₹65,000