Income Tax

Section 80G Donations: How Much Tax Deduction Can You Actually Claim?

CA Nikhil Gupta·June 2026·7 min readDEDUCTION GUIDE

Reviewed by CA Nikhil Gupta · Last reviewed 17 June 2026

Donating to charity feels good — but the tax deduction you actually get under Section 80G depends heavily on which organization you donated to and how. Some donations get 100% deduction with no limit, others get only 50%, and some are capped at 10% of your adjusted gross total income. Cash donations above ₹2,000 don't qualify at all. Here's how to make sure your donation actually reduces your tax bill.

The Four Categories of Section 80G Deductions

Section 80G classifies eligible donations into four categories based on the deduction percentage and whether a 'qualifying limit' applies:

Category	Deduction	Qualifying Limit?	Examples
1	100%	No limit	PM National Relief Fund, PM CARES Fund, National Defence Fund
2	50%	No limit	Jawaharlal Nehru Memorial Fund, PM Drought Relief Fund
3	100%	Subject to 10% of adjusted GTI	Donations to government/local authority for promoting family planning
4	50%	Subject to 10% of adjusted GTI	Most registered charitable trusts and NGOs (80G-approved)

What Is 'Adjusted Gross Total Income'?

For categories with a qualifying limit (10% cap), the limit is calculated on your 'Adjusted Gross Total Income' — which is your Gross Total Income MINUS: long-term capital gains, short-term capital gains taxed under Section 111A, income of foreign companies, and deductions under Sections 80C to 80U (except 80G itself).

The ₹2,000 Cash Donation Rule

⚠ No deduction for cash donations above ₹2,000: Under Section 80G, any donation made in cash exceeding ₹2,000 is NOT eligible for deduction — even if the recipient is a 100%-deduction Category 1 organization. To claim deduction on larger donations, pay via cheque, demand draft, UPI, net banking, or any other electronic/banking mode.

Old Regime vs New Regime

Section 80G is not available under the new tax regime. If you've opted for the new regime, donations — regardless of the recipient — do not reduce your taxable income. This is one of several Chapter VI-A deductions specifically excluded under Section 115BAC.

Documents You Need

80G certificate/receipt from the organization, showing its registration number, PAN, and the 80G approval validity period
The receipt must mention the donor's name, donation amount, and date
From AY 2021-22 onwards, donations must be reported by the recipient organization in Form 10BD, which then reflects in your AIS/Form 26AS — mismatches between your claim and the reported donation can trigger queries

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Plan your donations before claiming 80GCheck whether the old regime (with 80G) or the new regime works out better for your overall tax.

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Common Mistakes

Donating in cash above ₹2,000 and assuming it's deductible
Donating to an organization whose 80G registration has expired (registrations are now valid for a fixed period and must be renewed)
Forgetting that the deduction is capped at 10% of adjusted GTI for most NGO donations — not the full donated amount
Claiming 80G under the new tax regime

Frequently Asked Questions

Can I claim a deduction for a ₹5,000 cash donation to a charitable trust? ▼

No. Under Section 80G, any single donation made in cash exceeding ₹2,000 is not eligible for deduction, regardless of the recipient organization's category (even a 100%-deduction fund). To claim deduction on a ₹5,000 donation, it must be made through a non-cash mode — cheque, demand draft, UPI, net banking, debit/credit card, or similar electronic payment method.

Is Section 80G available if I choose the new tax regime? ▼

No. Section 80G deduction for donations is one of the Chapter VI-A deductions that is not available under the new tax regime (Section 115BAC). If you opt for the new regime, donations to any organization — including 100%-deduction funds like the PM National Relief Fund — will not reduce your taxable income. You would need to be in the old tax regime to benefit from 80G.

What is the 10% 'qualifying limit' under Section 80G and how is it calculated? ▼

For most donations to charitable institutions (Category 3 and 4), the deduction is restricted to 10% of your 'Adjusted Gross Total Income' — which is your Gross Total Income minus long-term capital gains, certain short-term capital gains under Section 111A, income of foreign companies, and most other Chapter VI-A deductions (other than 80G). If your donation amount exceeds this 10% threshold, only the amount up to the threshold is considered for the deduction percentage (50% or 100% depending on category) — the excess donation gets no tax benefit.

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

Page source links

The prior page did not embed a page-specific external source. The category authority above is the minimum verification starting point; a specific instrument should be added when available.

Primary sources & related provisions

Statutory provisions referenced in this guide:

Section 10 - Income-tax Act