Every rupee of eligible deduction reduces the income on which you pay tax. Section 80G of the Income-tax Act, 1961 is one such provision, and using it correctly can meaningfully lower your tax bill.

This guide explains Section 80G in plain language — the deduction limit, who can claim it, what is covered, the documents to keep, and the exact steps to claim it in your ITR.

What is 80G?

Section 80G provides a deduction for donations made to specified funds and charitable institutions. Depending on the recipient, either 50% or 100% of the donation is deductible, sometimes subject to a qualifying limit.

How much can you claim?

50% or 100% of the eligible donation; some categories are capped at 10% of adjusted gross total income.

Who is eligible

  • Any taxpayer (individual, HUF, company, firm).
  • Donations above ₹2,000 must be made in a non-cash mode.
  • Available under the old regime.

What is covered

  • PM National Relief Fund and similar 100% funds
  • Registered charitable trusts with 80G approval (usually 50%)

Documents and proof to keep

  • Stamped donation receipt with the trust's name, PAN and 80G registration number
  • Form 10BE donation certificate for eligible institutions

Retain these documents even though they are not attached to the return — the tax department can ask for them during processing or assessment.

50% with qualifying limit

You donate ₹40,000 to a trust eligible for 50% deduction subject to the 10% cap. If 10% of your adjusted gross total income is ₹30,000, the deduction base is limited to ₹30,000, so you claim ₹15,000 (50%).

Points to remember

  • Cash donations above ₹2,000 are not eligible for deduction.

How to claim it in your ITR

  1. Gather proof. Collect the certificates, receipts or statements listed above for the financial year.
  2. Choose the right regime. Opt for the old regime in your return, otherwise the deduction will not apply.
  3. Enter the amount. Report the eligible amount against Section 80G in the deductions schedule of your ITR on the income-tax e-filing portal.
  4. Verify and file. Cross-check against Form 26AS / AIS, then submit and e-verify the return within the prescribed time.

Frequently asked questions

Do I need a receipt?

Yes. Keep the stamped receipt and, where applicable, Form 10BE issued by the donee institution.

Can companies claim 80G?

Yes, but CSR contributions are generally not eligible for an 80G deduction.