Section 80G
Section 80G allows a deduction for donations made to approved charitable institutions and relief funds. Depending on the recipient, you get either 50% or 100% of the donation as a deduction, sometimes with a cap of 10% of adjusted gross total income.
What is Section 80G?
Section 80G splits eligible donations into four buckets. 100% deduction without any qualifying limit (PM National Relief Fund, National Defence Fund, PM CARES). 50% deduction without limit (PM's Drought Relief Fund and a few others). 100% with a 10% of adjusted gross total income cap (donations to government for family planning and a few notified bodies). 50% with the same 10% cap (most NGOs and registered charitable trusts). Donations above ₹2,000 must be paid by non-cash mode (cheque, UPI, card, net banking). Cash donations above ₹2,000 do not qualify. From FY 2021-22 onwards, the donee must furnish Form 10BE to the donor, and the donor must quote it while claiming. 80G is available only under the old tax regime.
Example
Vikram earns a gross total income of ₹15 lakh. He donates ₹50,000 to an NGO that qualifies for 50% deduction with the 10% cap. His 10% cap is ₹1,50,000, so the full ₹50,000 is within the cap. Deduction: 50% of ₹50,000 = ₹25,000.
How Section 80G is used
Most employers do not allow 80G during payroll TDS unless donations are made through the company (like CSR-linked giving). Employees usually claim 80G directly while filing ITR.
Section 80G FAQs
Can I claim 80G if I donate in cash?
Cash donations up to ₹2,000 qualify. Anything above ₹2,000 must be paid through non-cash mode to be eligible.
Is 80G available in the new tax regime?
No. Like other Chapter VI-A deductions, 80G works only under the old regime.
Do I need any document from the NGO?
Yes. The NGO must issue a stamped receipt and a Form 10BE. You need the unique reference number from Form 10BE while filing ITR.