Section 80G Donations – Complete Guide to Tax-Saving Donations in India

The Ultimate Guide to Donations (80G) – Maximize Tax Savings with Complete Details

Donating to charity is not just about giving back—it’s also a smart way to save taxes under Section 80G of the Income Tax Act. But how does it work? Which donations qualify? What are the limits?

This comprehensive guide explains everything in simple Indian English, with detailed data, examples, and expert tips to help you claim maximum tax benefits.

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1. What is Section 80G? (Deep Explanation)

Section 80G allows taxpayers to reduce their taxable income by claiming deductions on donations made to approved charitable institutions, religious trusts, and government funds.

Why Was Section 80G Introduced?

• To encourage philanthropy by offering tax incentives.
• To support NGOs, disaster relief, education, and healthcare initiatives.
• To reduce black money by promoting digital donations (cash donations above ₹2,000 are not eligible).

 

Who Can Claim 80G Deduction?

✔ Individuals (Salaried & Self-Employed)
✔ HUFs (Hindu Undivided Families)
✔ Companies & Firms (Different rules apply)

Note: NRIs can also claim 80G deductions if they donate to Indian-registered NGOs.

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2. Types of 80G Donations – Full Breakdown

Not all donations qualify. The deduction depends on:
✅ Type of Institution (Govt. fund, NGO, religious trust)
✅ Percentage of Deduction (50% or 100%)
✅ Upper Limit (No limit or 10% of income)

A. 100% Deduction (No Limit)

Fund/Institution	Example	Why Donate?
Prime Minister’s National Relief Fund (PMNRF)	COVID-19 Relief	Emergency aid, disaster support
National Defence Fund	Army welfare	Supports martyrs' families
Swachh Bharat Kosh	Clean India Mission	Sanitation & hygiene projects
Chief Minister’s Relief Fund (State-wise)	Flood relief	State-specific emergencies

 

Tax Benefit: Full donation amount is deductible.

Example:

• Donation: ₹1,00,000 to PMNRF
• Taxable Income Reduction: ₹1,00,000

 

B. 50% Deduction (No Limit)

Fund/Institution	Example	Why Donate?
Registered NGOs	CRY, HelpAge India	Child welfare, elderly care
Educational Institutions	IIT/IIM alumni funds	Scholarships, infrastructure
Religious Trusts (Approved)	Tirumala Tirupati Devasthanam (TTD)	Temple maintenance

Tax Benefit: 50% of donation amount is deductible.

Example:

• Donation: ₹50,000 to CRY
• Taxable Income Reduction: ₹25,000

 

C. 100% Deduction (Capped at 10% of Income)

Fund/Institution	Example	Why Donate?
Jawaharlal Nehru Memorial Fund	Education & research	Supports students
Government-approved rural projects	NABARD funds	Farmers’ welfare

 

Tax Benefit: Full donation amount, but maximum up to 10% of gross income.

Example:

• Gross Income: ₹10,00,000
• Max Deduction Allowed: ₹1,00,000 (10%)
• Donation: ₹1,50,000 → Only ₹1,00,000 is deductible

 

D. 50% Deduction (Capped at 10% of Income)

Fund/Institution	Example	Why Donate?
Local Charities	Small NGOs	Community development
Some Religious Trusts	Gurudwara donations	Langar, social work

 

Tax Benefit: 50% of donation amount, but maximum up to 10% of gross income.

Example:

• Gross Income: ₹10,00,000
• Max Deduction Allowed: ₹50,000 (50% of ₹1,00,000)
• Donation: ₹1,00,000 → Only ₹50,000 is deductible

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3. How to Verify an NGO’s 80G Status? (Step-by-Step)

Before donating, always check if the organization has a valid 80G certificate.

Method 1: Ask for 80G Certificate

A genuine NGO will provide:
✔ 80G Registration No. (e.g., AAABC1234L)
✔ PAN of the Trust
✔ Validity Period (Some certificates expire)

 

Method 2: Check on Income Tax Website

1. Go to https://incometaxindia.gov.in
2. Search for "80G approved institutions"
3. Enter NGO name/PAN to verify

 

Method 3: Look for Transparency

✔ Website (Should mention 80G status)
✔ Annual Reports (Shows fund usage)
✔ FCRA Registration (If accepting foreign donations)

Red Flags:
❌ No proper receipt
❌ Refusal to share 80G certificate
❌ Only accepts cash donations

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4. Documents Required for Claiming 80G Deduction

To claim tax benefits, keep these mandatory documents:

Document	Details Required	Why Important?
Donation Receipt	NGO’s name, 80G No., PAN, amount, date	Proof of donation
Bank Statement	UPI/Cheque/Online transaction ID	Avoids cash rejection
Form 10BE (For donations > ₹2,000)	Generated by NGO	Mandatory for ITR filing

 

Pro Tip:

• Cash donations > ₹2,000 are NOT eligible. Always use digital payments.
• Keep records for 7 years (IT Dept can audit).

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5. How to Claim 80G Deduction in ITR? (Screenshots + Example)

While filing Income Tax Return (ITR), follow these steps:

 

Step 1: Collect Donation Receipts

Ensure each receipt has:

• NGO’s 80G No.
• Your PAN
• Amount & Date

 

Step 2: Fill ITR Form (ITR-1/ITR-2)

• Go to "Deductions" → "Section 80G"
• Enter donation details

 

Step 3: Upload Proof (If Asked)

• Attach Form 10BE (for donations above ₹2,000)

Example Calculation:

• Total Income: ₹15,00,000
• Donation to PMNRF (100% deduction): ₹1,00,000
• Donation to CRY (50% deduction): ₹50,000 → ₹25,000 deductible
• Total Deduction: ₹1,25,000
• New Taxable Income: ₹15,00,000 – ₹1,25,000 = ₹13,75,000

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6. Top 10 Best 80G Approved NGOs in India (2024)

Here’s a list of trusted NGOs where your donations qualify for tax benefits:

NGO Name	Cause	Deduction %	Website
PM CARES Fund	Disaster Relief	100%	https://pmcares.gov.in
CRY (Child Rights & You)	Child Welfare	50%	https://www.cry.org
HelpAge India	Elderly Care	50%	https://www.helpageindia.org
Akshaya Patra	Mid-Day Meals	50%	https://www.akshayapatra.org
Goonj	Rural Development	50%	https://goonj.org
Sankara Eye Foundation	Free Eye Surgeries	50%	https://www.sankaraeye.com
Nanhi Kali	Girl Child Education	50%	https://www.nanhikali.org
GiveIndia	Multiple Causes	50%	https://www.giveindia.org
Smile Foundation	Education & Health	50%	https://www.smilefoundationindia.org
ISKCON (Food Relief)	Free Meals	50%	https://www.iskconfoodrelief.org

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7. Common Mistakes to Avoid (Loss of Tax Benefits)

❌ Donating in cash above ₹2,000 → No deduction allowed
❌ No proper receipt → IT Dept may reject claim
❌ Donating to non-80G NGOs → Zero tax benefit
❌ Missing Form 10BE for large donations → Deduction denied

Best Practices:
✔ Always donate via UPI/Cheque/Bank Transfer
✔ Verify 80G status before donating
✔ Keep records for 7 years

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8. FAQs – Quick Answers to Doubts

Q1. Can I claim 80G for donations to political parties?

• No, political donations fall under Section 80GGB/80GGC, not 80G.

 

Q2. Is there a minimum donation amount for 80G?

• No, even ₹10 qualifies if the NGO is 80G approved.

 

Q3. Can NRIs claim 80G deductions?

• Yes, if donating to Indian-registered NGOs.

 

Q4. What if the NGO loses its 80G status later?

• Donations made while valid still qualify.

 

Q5. Can I claim 80G for foreign donations?

• No, only Indian-registered NGOs are eligible.

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9. Advanced Tips for Smart Donors

💰 Maximize Tax Savings:

• Donate before March 31 to claim in the same financial year.
• Use salary deductions (some companies match employee donations).

🔍 Ensure Transparency:

• Check NGO’s annual report to see fund utilization.
• Prefer FCRA-certified NGOs (more accountability).

📲 Digital Donations:

• UPI, Net Banking, Cheque are safest (avoid cash).

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10. Final Thoughts – Donate Wisely, Save Taxes

Section 80G is a win-win—you support social causes and reduce taxes.

Key Takeaways:
✔ Donate to 80G-approved NGOs only
✔ Keep digital receipts & Form 10BE
✔ Avoid cash donations above ₹2,000
✔ Claim deduction while filing ITR

 

📢 Share this guide to help others save taxes while donating!