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.

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. Cash donations above ₹2,000 do not qualify.

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

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Finin2min Summary

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. Cash donations above ₹2,000 do not qualify.

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
Editorial review date
2026-08-02
Content status
Finin2min explanation; official source controls where facts, law, rates, forms or procedures can change.

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