In this guide
What is the Section 80G deduction?
Section 80G of the Income-tax Act, 1961 allows a deduction for donations to certain funds and institutions. It does not apply to every charity or fundraising appeal. Check that the recipient was eligible for the deduction when you donated.
AY 2026-27 covers income earned from 1 April 2025 to 31 March 2026. The return for this year remains under the 1961 Act. Section 80G is available under the old tax regime, but not under the default new tax regime.
How much can you claim?
The deduction depends on the fund or institution. Donations fall into four broad categories:
| Donation category | Deduction rate | Qualifying limit |
|---|---|---|
| Specified funds or institutions | 100% | No limit |
| Specified funds or institutions | 50% | No limit |
| Other specified funds or institutions | 100% | Subject to a qualifying limit |
| Other specified funds or institutions | 50% | Subject to a qualifying limit |
For donations subject to the qualifying limit, the eligible donation amount is generally capped at 10% of adjusted gross total income (AGTI). The deduction rate is then applied to the eligible amount.
AGTI is not simply your salary or total income. It is calculated after specified deductions and exclusions, which can include certain capital gains and income taxed under special provisions. Use the current Section 80G instructions and ITR utility to work it out.
Example: If your AGTI is ₹7 lakh, the qualifying limit is ₹70,000. If you donate ₹1 lakh to an institution eligible for a 50% deduction subject to this limit, the eligible donation is capped at ₹70,000 and the deduction is ₹35,000.
A deduction reduces taxable income; it does not reduce your tax bill by the full donation amount.
Which donations qualify?
Only donations to specified or approved funds and institutions qualify. The recipient’s category determines whether the deduction is 50% or 100%, and whether the qualifying limit applies. Check the recipient’s Section 80G approval and its validity for the donation date.
- Cash donations exceeding ₹2,000 are not eligible. Pay by a non-cash method and retain proof.
- Donations of goods or services are not donations of money under Section 80G.
- Contributions to political parties or electoral trusts fall under separate provisions, not Section 80G.
- Section 80G is not available under the default new tax regime.
Documents and details to keep
Keep the donation receipt and Form 10BE, where issued, along with bank, UPI or other payment proof. Check that the donee’s name, address, PAN, approval details, donation amount and date are correct.
For AY 2026-27, Schedule 80G asks for details such as the donee’s PAN and name, donation amount, payment mode and transaction reference. Some fields also request the bank’s IFSC.
Approved donees generally report donations in Form 10BD and issue donor certificates in Form 10BE. If the certificate does not match your payment records, contact the donee before filing.
TaxClear’s guide to keeping ITR documents and tax records explains how to organise supporting evidence.
How to claim Section 80G in your ITR
- Confirm that you are using the old tax regime and that the recipient’s approval covered the donation date.
- Identify the correct deduction category and calculate the eligible amount, including any qualifying limit.
- Complete Schedule 80G in the appropriate ITR form with the donee and payment details requested by the utility.
- Reconcile your claim with the receipt, Form 10BE, where applicable, and payment proof. Do not claim more than the eligible amount.
- Validate, submit and verify the return. Keep the acknowledgement and supporting documents.
See TaxClear’s online ITR filing guide for AY 2026-27 for the filing process.
Frequently asked questions
Can I claim Section 80G for a donation to any charity?
No. The recipient must be an eligible fund or institution, and the deduction depends on its category and approval.
Is the full donation amount deductible?
Not always. The deduction may be 50% or 100%. Some donations are also subject to the 10% AGTI qualifying limit.
Can I claim a cash donation of ₹2,000?
The restriction applies to cash donations exceeding ₹2,000. The recipient must still qualify, and other conditions apply.
Is a donation receipt enough?
Keep the receipt and payment proof, and check the donee’s details. Reconcile the receipt with Form 10BE where applicable.
Can I claim Section 80G under the new tax regime?
No. Section 80G is not available under the default new tax regime for AY 2026-27.
