Every year between January and March, individuals and companies across India rush to finalise donations before the financial year closes on 31 March. A large part of that giving is driven by one section of the Income Tax Act: Section 80G, which lets you claim a deduction on money you give to approved charitable organisations. Used well, 80G lowers your tax bill and channels more money to good causes. Used carelessly, donors lose the benefit on a technicality. This guide explains exactly how 80G works in 2026, how to claim it, and how to make sure your donation actually qualifies.
Why 80G matters right now
80G is a year-round rule, but searches and donations peak in the January–March window because that is when people do their tax planning before the year ends. Two things make 2026 a little different. First, the compliance regime for NGOs is tighter than it used to be — 80G approvals are now time-bound and must be renewed, and every approved institution has to report your donation to the tax department. Second, the new Income-tax Act, 2025 came into force on 1 April 2026, replacing the 1961 Act; the government has confirmed that rates, deductions and exemptions stay the same, so 80G continues — but returns for FY 2025-26 (assessment year 2026-27) that people are filing now are still governed by the old Act's numbering. The mechanics below apply in both.
What Section 80G actually gives you
80G is a deduction, not a refund. It reduces the income on which your tax is calculated; it does not hand back the full amount you donated. Depending on the organisation, you can deduct either 50% or 100% of your donation, and for many charities that deduction is further capped by a qualifying limit of 10% of your adjusted gross total income (broadly, your total income before the 80G deduction, with a few technical adjustments).
A worked example makes it concrete. Suppose you donate 20,000 to a registered NGO whose 80G approval allows a 50% deduction, and your income comfortably exceeds the qualifying limit:
- Eligible deduction = 50% of 20,000 = 10,000 off your taxable income.
- If you fall in the 30% slab under the old regime, your tax drops by 30% of 10,000 = 3,000, plus 4% health-and-education cess = 3,120.
- So your 20,000 gift effectively costs you about 16,880.
Give the same 20,000 to a fund that qualifies for a 100% deduction with no limit — such as the Prime Minister's National Relief Fund or PM CARES — and the full 20,000 is deducted, saving roughly 6,240 in the 30% slab, so the gift costs about 13,760. The cause you care about, and the category its 80G approval falls into, both matter.
The four 80G categories
Approved donations fall into four buckets. The first thing to check on any receipt is which one applies.
| Category | Deduction | Qualifying limit? | Typical examples |
|---|---|---|---|
| 100% without limit | Full amount | No | PM National Relief Fund, PM CARES, National Defence Fund, National Blood Transfusion Council |
| 50% without limit | Half the amount | No | Prime Minister's Drought Relief Fund, Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust |
| 100% with limit | Full amount, capped at 10% of adjusted GTI | Yes | Government or local authority for family planning, Indian Olympic Association |
| 50% with limit | Half the amount, capped at 10% of adjusted GTI | Yes | Most registered charitable trusts and NGOs with 80G approval |
The great majority of everyday donations — to an education, health or child-welfare NGO — fall in the last row: 50% with a qualifying limit. That is not a downside; it simply means you plan the size of your gift with the 10% cap in mind if you are giving very large sums.
The catch most donors miss: 80G only works under the old regime
This is the single most common reason donors lose their deduction. Since the new tax regime under Section 115BAC became the default, most deductions — including 80G — are not available to anyone taxed under it. To claim your donation you must be on the old regime. Salaried taxpayers can simply choose the old regime when filing their return each year. If you have business or professional income, you must file Form 10-IEA before the due date to opt out of the new regime, and switching back and forth is restricted. Decide before you file: if the tax saved on your donations is smaller than what the new regime's lower slab rates save you overall, the old regime may not be worth it. Run both numbers.
How to claim 80G, step by step
- Confirm the NGO's 80G approval before you give. Ask for the approval number and check that it is current, not lapsed.
- Pay in a traceable mode — UPI, card, net-banking, cheque or draft. Keep cash gifts under 2,000 if you want the deduction.
- Collect a stamped receipt showing the NGO's name, address, PAN, 80G approval number, your name, the amount and the date.
- Ask for Form 10BE, the donation certificate the NGO must issue after filing its Form 10BD statement of donations.
- Choose the old regime and enter the donation details — donee name, PAN, amount and category — in the 80G schedule of your ITR.
- Keep the records for at least a few years in case of a query.
Documents, receipts and the 2,000 cash rule
Your claim is only as good as your paperwork. A valid 80G receipt must carry the organisation's PAN and 80G approval number — a receipt without these cannot support a deduction. Remember three limits that trip donors up: cash donations are eligible only up to 2,000; donations in kind (clothes, food, laptops) do not qualify under 80G; and where a qualifying limit applies, your total 80G deduction cannot exceed 10% of adjusted gross total income. Since FY 2021-22 the tax department pre-fills much of this from the NGO's Form 10BD filing, so the name and PAN on your receipt must match exactly what the NGO reports.
Common mistakes to avoid
- Filing under the new regime and then claiming 80G — the claim is simply disallowed.
- Donating large amounts in cash — anything over 2,000 in cash gets you nothing back.
- Assuming 80G means a full refund — you get back your slab rate on the eligible portion, not the whole donation.
- Not checking whether 80G is current — approvals now expire and must be renewed; a lapsed 80G means no deduction.
- Losing the receipt or skipping Form 10BE — without proof, the deduction will not stand up to scrutiny.
How to choose where to give
The tax benefit should never be the only reason you pick a charity — but the same registrations that unlock 80G are also good signals of a well-run organisation. Before you donate, run a short credibility check:
- 12A — confirms the NGO is registered as a tax-exempt charitable body.
- 80G — lets your donation qualify for a deduction; confirm it is valid and current.
- CSR-1 — needed if the NGO wants to receive company CSR funds.
- FCRA — required if it accepts foreign donations.
- Reporting — a genuine NGO will share its latest annual report and audited accounts.
If any of those terms are unfamiliar, our full 12A, 80G, CSR-1 and FCRA guide explains each one, and our guide on how to verify an NGO before donating walks through the checks in detail. You can also browse NGOs whose compliance has already been checked on NGOLists.
Section 80G is one of the simplest ways the tax system rewards generosity — but only if you give to a properly approved organisation, pay in a traceable mode, keep your receipt and file under the right regime. Get those four things right, choose a cause you believe in, and give with confidence.