Section 80G
Donation Deduction

Section 80G Income Tax Act ke under, charitable / philanthropic donations par tax deduction milta hai. 4 CATEGORIES of deduction: (1) 100% DEDUCTION (no cap) — PM CARES, Swachh Bharat Kosh, Clean Ganga, National Defence Fund. Whatever you donate, 100% deductible. (2) 100% DEDUCTION (up to 10% adjusted GTI) — specific government programs. (3) 50% DEDUCTION (no cap) — specific memorial/relief funds. (4) 50% DEDUCTION (up to 10% adjusted GTI) — most charitable NGOs. CRITICAL: Old tax regime ONLY. NEW regime me 80G nahi milta. CAP CALCULATION: 'Adjusted Gross Total Income' = GTI - LTCG - STCG (115BBH/112A) - other special incomes. CASH DONATION LIMIT: Cash donations only deductible up to ₹2,000. Above ₹2,000 MUST be electronic (cheque, bank transfer, UPI). EXAMPLE: ₹10L salary, ₹50K to charity NGO (50% cap 10% adjusted GTI): 50% of ₹50K = ₹25K deduction. At 30% slab = ₹7,800 tax saving on ₹50K donation = effective cost ₹42,200.

PM CARES (Prime Minister's Citizen Assistance and Relief in Emergency Situations) Fund March 2020 me COVID-19 emergency ke liye launch hua. Section 80G ke (i) clause me notified — 100% DEDUCTION WITHOUT INCOME CAP. SAME 100% UNCAPPED CATEGORY: (1) Prime Minister's National Relief Fund (PMNRF). (2) National Defence Fund. (3) Swachh Bharat Kosh (Swachh Bharat Mission). (4) Clean Ganga Fund. (5) National Children's Fund. (6) Specific notified universities/research bodies. WHY UNCAPPED: Government wants to encourage citizen contribution to national priorities — no income % limit means very wealthy individuals can donate large amounts + still get full deduction. STRATEGIC FOR HIGH-INCOME: If you earn ₹50L+ + give significant philanthropy, donate to 100%-uncapped funds for maximum tax efficiency. ₹5L PM CARES = ₹5L deduction = ₹1.56L tax saving at 30% slab. NOTE: Foreign Contribution Regulation Act (FCRA) compliance applies if NRI donating to Indian entities — must use NRO + designated routes.

NGO must have 80G REGISTRATION CERTIFICATE from Income Tax Department. Step to verify: (1) Ask NGO for 80G registration number + valid certificate. (2) Cross-check on Income Tax e-filing portal — search by NGO PAN. (3) Verify certificate validity dates (registration must be active during FY of your donation). POPULAR NGOs WITH 80G (50% deduction cap): GiveIndia, Goonj, CRY (Child Rights and You), Akshay Patra Foundation, Smile Foundation, HelpAge India, Save the Children India, Magic Bus, Pratham, Save the Tiger, WWF India, Greenpeace India. CRITICAL: Many small/local NGOs may NOT have 80G. Always verify BEFORE donating if tax benefit is your goal. CASH-LIMITS: ₹2,000 maximum cash donation for 80G eligibility. Above ₹2,000 MUST be cheque/online transfer. RECEIPT REQUIRED: NGO must issue stamped receipt with their 80G registration number + your PAN. Keep for ITR + 8 years assessment window.

REQUIRED DOCUMENTS for 80G claim in ITR: (1) STAMPED RECEIPT from recipient organization showing: (a) Donation amount, (b) Donor name + PAN, (c) Recipient organization name + PAN + 80G registration number + validity, (d) Donation date, (e) Payment mode (online/cheque/cash). (2) BANK STATEMENT showing the debit transaction (for online donations). (3) PAYMENT PROOF: UPI transaction confirmation, cheque image, bank transfer receipt. (4) FORM 10BE — for donations to certain institutions, recipient must issue Form 10BE (Statement of Donation) by May 31 of following FY. Without Form 10BE, deduction NOT allowed for these institutions (rule from FY 2022-23). FILING: In ITR, declare donation in Schedule 80G with all details. IT system cross-verifies with recipient's annual return + Form 10BE. RECENT RULE: AIS (Annual Information Statement) now shows reported donations — discrepancies trigger queries. AUDIT TRAIL: maintain digital + physical copies for 8 years (assessment window).

Cash donation deduction RULES (Finance Act 2017 amendment): (1) CASH ABOVE ₹2,000: NO 80G deduction allowed. Even if you have receipt — disallowed in ITR. (2) CASH UP TO ₹2,000: 80G allowed (subject to other category rules). PURPOSE: Anti-money-laundering measure — prevent fake donation receipts to launder cash. RECOMMENDATION: Always donate via electronic mode for amounts > ₹2,000. Options: (1) UPI to NGO's UPI ID. (2) Net banking transfer to NGO's bank account. (3) Cheque/DD (still electronic for 80G purpose). (4) Credit card via NGO's online portal. (5) Salary deduction route (some employers offer charitable deduction via payroll). EXCEPTION FOR CERTAIN INSTITUTIONS: Cash > ₹2,000 to RELIGIOUS INSTITUTIONS (where bank account difficulty) still has limited deduction — verify specific institution rules. STRATEGY: even small donations of ₹500-1,000 cash to multiple NGOs add up to ₹10K-50K — keep all electronic for fully-defendable 80G claim.

Maximum 80G deduction depends on category: (1) 100% UNCAPPED CATEGORY (PM CARES, Swachh Bharat etc.): NO LIMIT — donate ₹10 crore, get ₹10 crore deduction. Wealth-tax + future planning rationale for high-net-worth donors. (2) 100% CAPPED CATEGORY: Up to 10% of 'Adjusted Gross Total Income' (Adjusted GTI = GTI - special-rate incomes like LTCG/STCG). Donation above 10% cap NOT deductible for excess. (3) 50% UNCAPPED CATEGORY: NO income % cap, but only 50% of donation deductible. (4) 50% CAPPED CATEGORY (most NGOs): Up to 10% of Adjusted GTI, AND 50% of donation deductible. EXAMPLES: GTI ₹15L (Adjusted ₹15L if no special income). 10% cap = ₹1.5L. (a) Donate ₹2L to Goonj (50% capped): only ₹1.5L counts under cap × 50% = ₹75K deduction. ₹50K above cap wasted. (b) Donate ₹2L to PM CARES (100% uncapped): full ₹2L deduction = ₹62,400 tax saving at 30% slab. STRATEGIC: prioritize 100% uncapped funds for big donations.

EMPLOYEE WORKFLOW for 80G claim: (1) RECEIVE DONATION RECEIPT from NGO with PAN + 80G registration number. (2) SUBMIT TO EMPLOYER via Form 12BB (Statement of investments + deductions): attach donation receipt copies. Employer factor into TDS. EMPLOYER ROLE: TDS calculation adjusts considering 80G deduction. Monthly take-home reflects benefit. ITR FILING: (1) In your annual ITR, Schedule 80G fill: NGO name, PAN, 80G registration, donation amount, payment mode. (2) Match employer's Form 16 + AIS data. (3) Claim final 80G in income computation. PAYROLL DEDUCTION OPTION: Many employers (Infosys, TCS, Wipro etc.) offer auto-deduct from monthly salary to partner NGOs — simpler than personal donation. End of year employer provides 80G receipt covering full year. ANY DOUBT: file ITR independently with all donations, even if employer didn't account for some. Refund will come if TDS over-deducted.

Section 80G OLD TAX REGIME ONLY. New regime (default from FY 2023-24): NO 80G deduction. CHOICE FRAMEWORK: At 30% slab with significant 80G donations: OLD regime wins. (i) GTI ₹20L. (ii) Donations ₹2L (100% uncapped category). (iii) 80C ₹1.5L. (iv) 80D ₹25K. OLD REGIME taxable ₹20L - ₹2L - ₹1.5L - ₹25K = ₹16.25L. Tax ~₹2.71L. NEW REGIME taxable ₹20L. Tax ~₹2.20L. OLD wins by ₹0.51L = significant. WITHOUT significant 80G: new regime usually wins. THUMB RULE: total deductions (80C + 80D + 80E + 80G + HRA) > ₹2-3L → old regime. Otherwise new. SWITCH FLEXIBILITY: salaried can switch each FY via Form 12BB. Business income: only once via Form 10-IEA. USE CALCULATOR: Richify Income Tax Calculator FY 2026-27 compares both regimes side-by-side including 80G impact.