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Income Tax

Section 80G Donation Limit: 100%, 50% and 10% Cap

CA Nikhil Gupta·Aug 2026·4 min readIncome Tax

Section 80G has four practical categories: 100% or 50% deduction, each either without a qualifying limit or subject to a 10% adjusted gross-total-income cap.

Reviewed by CA Nikhil Gupta · Last reviewed 5 Aug 2026 · Reflects Section 80G of the Income-tax Act, 1961 for AY 2026–27

The four categories combine two deduction rates (100% or 50%) with two limit types (no qualifying limit, or capped at 10% of adjusted gross total income) — for example, a donation to the PM National Relief Fund gets 100% deduction with no cap, while a donation to most other approved charitable trusts gets 50% deduction subject to the 10% cap. Which cell of this matrix your donee falls into decides the actual deduction, not just the amount donated.

Legal or Computational Framework

For AY 2026–27, identify the donee and statutory category before calculating the deduction. For donations subject to the qualifying limit, aggregate the relevant donations, cap the qualifying amount at 10% of adjusted gross total income, and then apply the applicable 100% or 50% rate. The deduction is ordinarily unavailable under the default new regime.

Worked Example

The excess ₹20,000 donation is not deducted because the qualifying base is capped at ₹80,000. If the same ₹1,00,000 were donated to a fund eligible for 100% deduction without limit and paid through an eligible mode, the deduction could be ₹1,00,000.

What Generic Pages Miss

  • Assuming every donation gets 100%.
  • Applying 10% to the deduction instead of the qualifying donation base.
  • Claiming cash above ₹2,000.
  • Ignoring adjusted gross total income exclusions.
  • Claiming donations in kind.
  • Using an expired or invalid donee approval.

Practical Documentation Checklist

  • Donation receipt
  • Form 10BE or prescribed certificate
  • Donee PAN and 80G registration details
  • Bank/UPI/cheque payment proof
  • Adjusted gross total income working
  • Category classification of the donee
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Finin2min Summary

In short: confirm the donee’s exact 80G category (not merely whether it is “approved”), pay through a non-cash mode for any amount above ₹2,000, and retain Form 10BE and the donation receipt. The deduction is ordinarily unavailable under the default new tax regime, and your claim reconciles against the donee’s own reporting to the tax department.

Frequently Asked Questions

Is every 80G donation limited to 10% of income?
No. The qualifying limit applies only to specified categories.
Can I claim a ₹5,000 cash donation?
No deduction is allowed for a donation made in cash exceeding ₹2,000.
Are donations in kind eligible?
No. Section 80G is based on qualifying sums paid, not goods or services donated.
Can a company claim 80G?
Section 80G can apply to various assessees, subject to category and regime provisions.
What is adjusted gross total income?
It is gross total income reduced by specified exempt/special-rate income and other Chapter VI-A deductions for the qualifying-limit calculation.
Can I claim without Form 10BE?
The return claim should reconcile with donee reporting and prescribed evidence; obtain the certificate and verify details before filing.

Source and review trail

Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.

Primary category
Income Tax
Official starting point
www.incometax.gov.in

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