Exemption List Under Section 80G – Donations Eligible under 80G and 80GGA

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Charity or giving donations is a beautiful deed. It not only brings peace of mind and inner happiness but also allows people to earn tax exemptions from the government under section 80G. Giving charity or donation for a good cause allows people to do a bit for society, which is a noble gesture.

To encourage this noble gesture and to support people with more charity for different causes, the government has allowed tax deductions against contributions done towards some charitable organizations and relief funds. Section 80G of the Income Tax Act offers tax exemptions for donations.

Having said that, you may also note that not all donations are eligible for deductions under section 80G. Donations made to some specific funds/associations/institutions are only eligible for deduction under 80G. Let’s read more about section 80G in this post.

Who can Claim a Deduction Under Section 80G?

Taxpayers who can claim 80G exemptions include: 

  • Hindu Undivided Firm (HUF)
  • Companies
  • Firms
  • Individuals
  • Non-Resident Indian (NRI)
  • Any other person

You may note that section 80G of the Income Tax Act does not let you avail deductions on all donations. As discussed below, some prescribed funds only qualify as a deduction under this section. Also, you may note that deductions under section 80G are available only when you opt for the old tax regime and are not available under the new tax regime.

Mode of Payment to be Used for Donations to Claim Deductions Under Section 80G 

Exemptions under sec 80G of the Income Tax Act can be claimed if the donation is paid in terms of money and not in kind, and it should be paid either through cheque, demand draft, electronic payment mode, or cash (below INR 2000)

You may note that donations made in kind, as well as donations above INR 2000, are not accepted for deductions u/s 80G. Also, if you want to make donations above INR 2000, you must pay in any mode other than cash to qualify for 80G deductions.

Note that section 80G deductions for donations are available for up to 100% or, in some cases, 50% only. You may also face some restrictions for such deductions. It is important to keep receipts of such deductions containing the donation amount and the name and address of the fund/institution where the donation is made.

You may also like to check the eligibility and the limit of such donations to be made to avail of the maximum exemptions. The exemption limit may differ depending on the organization you are donating to.

Claim Deduction Process Under Section 80G

The process to claim deduction under section 80G requires the applicant to submit the below details while filing your income tax return (ITR):

  • Name of the donee or the person receiving a gift
  • PAN Details of the donee
  • Address of the donee
  • The donation amount or its breakup (given as cash or any other mode)
  • The applicable deduction amounts

All the above details should be mentioned in the respective tables in the ITR while filing it. The ITR has different tables for different donations, as mentioned below:

Table A

Donations that allow up to 100% tax deduction without a qualifying limit

Table B

Donations that allow up to 50% deduction without a qualifying limit

Table C

Donations that allow up to 100% deduction as per the qualifying limit

Table D

Donations that are entitled to up to 100% deduction as per the qualifying limit

Donations that Allow up to 100% Tax Deduction Without a Qualifying Limit

Below is the list of donations that allow a taxpayer the option to avail of up to a 100% tax deduction without a qualifying limit:

  • National Illness Assistance Fund
  • National Children’s Fund
  • An approved university/educational institution of National eminence
  • Fund set up by a state government for medical relief to the poor
  • National Sports Fund
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
  • Fund for Technology Development and Application
  • National Cultural Fund
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund concerning any State or Union Territory
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the earthquake victims in Gujarat, etc.

Donations that Allow up to 50% Tax Deduction Without Qualifying Limit

  • Prime Minister’s Drought Relief Fund

Besides the above, some donations are eligible for a 100% deduction as per the 10% adjusted gross total income. These include:

  • Donations made to a local authority approved by the government or to the government itself. Also, donations that are offered to institutions/associations that work towards promoting family planning are included in this list
  • Donations made by a firm/company to the Indian Olympic Association. Or a charity made towards an Indian association that works towards developing sports infrastructure in India, etc.

Similarly, some donations are eligible for a 50% deduction as per 10% adjusted gross total income. These include:

  • Any institution/fund that fulfills the conditions as per Section 80G (5)
  • Any authority, be it government or local, that is used for a charitable purpose other than promoting family planning
  • Any Indian authority working towards housing accommodation or development and planning of towns and cities
  • Any corporation mentioned under section 10(26BB) working towards promoting the interests of minorities
  • Donations made towards renovation or repair of notified religious places, etc.

Documents Needed to Claim Tax Deductions Under Section 80G

Taxpayers eligible to claim tax exemption u/s 80G should have the documents mentioned below:

1. Receipts (Duly Stamped):

A receipt from the charitable trust or association where the donation was made is a must for the taxpayer to present. The receipt should have details such as the name of the person who is donating, their address, the amount donated, the PAN number of the trust to whom the donation is made, etc.

2. Form 58:

Form 58 is another requirement for claiming tax exemption under section 80G for claiming a 100% deduction

3. Registration number of the trust/association receiving the donation:

All trusts/associations do have a registration number given by the Income Tax Department, which must be mentioned in the receipt of the donation

Updates on Section 80G Deduction 

The budget 2023 announced that donations made to the below-mentioned funds are not eligible for 80G deductions:  

  • National Defense Fund
  • Prime Minister’s National Relief Fund
  • The National Foundation for Communal Harmony
  • National/State Blood Transfusion Council

Donations that are eligible for a 50% deduction without any qualifying limit:

  • Jawaharlal Nehru Memorial Fund
  • Rajiv Gandhi Foundation
  • Indira Gandhi Memorial Trust
  • Prime Minister’s Drought Relief Fund

About section 80GGA

Donations made towards rural development or scientific research come under Section 80GGA of the Income Tax Act. The deductions under this category are allowed to every taxpayer except those who have experienced a loss at work.

Mode of payment for claiming deduction Under Section 80GGA

Cheques, demand drafts, cash, and online transfers are the various modes of payment that can be used for paying donations under section 80GGA. However, if the cash amount for donations is beyond INR 2,000, it is not allowed for deduction. Also, note that 100% of the donated amount is eligible for deductions.

How are section 80GG deductions calculated? 

Section 80GG deductions are allowed on the lowest of the below-mentioned amounts:

  • INR 5,000/month
  • 25% of the adjusted total income
  • Actual rent minus 10% of adjusted total income

What is adjusted total income?

Adjusted gross total income is the sum of all income under all heads minus the below amounts:

  • Amount deductible u/s 80C to 80U (excluding section 80G)
  • Exempt income or the income in which you don’t have to pay income tax
  • Capital gains over the long term
  • Capital gains over short-term u/s 111A
  • Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D

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FAQs: Donations Under Sections 80G and 80GGA

If I donate to a foreign trust, will I get a deduction u/s 80G?

No, if you make donations to a foreign trust, you will get no deduction u/s 80G.

Can 80G deductions be claimed through an employer?

Yes, 80G deductions can be claimed through your employer. You might have to furnish a certificate from your employer stating that you are making the 80G donation from your salary.

Can a partnership firm claim a deduction u/s 80G?

Yes. Firms, including partnership firms, companies, as well as individuals, can claim deductions u/s 80G.

Can I claim deductions under section 80G under the new tax regime?

No, deduction under section 80G is not allowed to taxpayers opting for the new tax regime.

Can NRIs claim a tax deduction for donations made to Indian NGOs under 80G?

Yes, NRIs can claim tax deductions against donations offered to Indian NGOs u/s 80G. However, in most cases, the amount deposited should be in INR.

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Jan 31, 2024
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