Donations Eligible for 80G Deduction: 100% and 50% Deductions Explained

Donating to a registered charitable trust? Under Section 80G of the Income Tax Act of 1961, you can claim a 50% or 100% deduction on your donation, effectively reducing your tax burden while doing good.

Over 7.28 crore Indian taxpayers filed returns in AY 2024-25, yet only a small fraction claimed deductions under Section 80G, revealing a huge untapped opportunity to save on taxes while making a difference.

Explore all you need to know about eligibility, qualified institutions, and required documents to claim your Section 80G deductions with ease.

Quick Synopsis

• Donations to charitable trusts are eligible for 100% or 50% tax deductions.
• The trust should be registered with the Indian Income Tax Department.
• Section 80G provides deductions for donations in cash ₹2,000.

Eligibility to Claim 80G Deduction

The list of taxpayers mentioned below can claim deductions under this section if they donate to certain funds:

• Individuals
• Firms
• Companies
• Non-resident Indians (NRI)
• Hindu Undivided Families (HUF)
• Any other person

Not all donations are eligible for deductions under Section 80G. Only those made to designated funds qualify for the deduction.

Note: This deduction cannot be claimed if the taxpayer opts for the new tax regime under Section 115BAC.

List of Eligible Donations for 100% 80G Deduction Without Qualifying Limit

Here is the list of donations under 80G eligible for a 100% deduction without limit:

• National Defence Fund of the Central Government
• National Relief Fund of the Prime Minister
• National Foundation for Communal Harmony
• National eminence-approved educational institution/university
• Zila Saksharta Samiti of any district under the district collector’s chairmanship
• State Government’s fund for medical relief to the poor
• National Illness Assistance Fund
• National Trust for Welfare of Persons with Autism, Mental Retardation, Cerebral Palsy and Multiple Disabilities
• National Blood Transfusion Council or any State Blood Transfusion Council
• National Sports Fund
• Fund for Technology Development and Application
• National Cultural Fund
• National Children’s Fund
• Lieutenant Governor’s Relief Fund or Chief Minister’s Relief Fund for any union territory or state
• The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
• Chief Minister’s Earthquake Relief Fund, Maharashtra
• The Maharashtra Chief Minister's Relief Fund during 1st October and 6th October 1993
• Gujarat Government’s relief fund for earthquake victims
• Chief Minister’s Earthquake Relief Fund, Maharashtra
• Trust, fund or institution where Section 80G (5C) is applicable for contributions to earthquake victims in Gujarat (26th January 2001 and 30th September 2001)
• Africa (Public Contributions - India) Fund
• Prime Minister’s Armenia Earthquake Relief Fund
• Swachh Bharat Kosh (Applicable from financial year 2014-15)
• National Fund for Drug Abuse Control (Applicable from financial year 2015-16)
• Clean Ganga Fund (applicable from financial year 2014-15)

List of Eligible Donations for 50% 80G Deduction Without Qualifying Limit

Here is the list of donations eligible for a 50% deduction without limit:

• Prime Minister’s Drought Relief Fund
• Indira Gandhi Memorial Trust (donations to this fund are ineligible for deduction from the financial year 2023-24)
• Jawaharlal Nehru Memorial Fund (donations to this fund are ineligible for deduction from financial year 2023-24)
• Rajiv Gandhi Foundation (donations to this fund are ineligible for deduction from the financial year 2023-24)

List of Eligible Donations for 100% Deduction Subject to 10% of Adjusted Total Income

Note that the following donations are eligible for a 100% deduction with a limit of 10% adjusted gross total income:

• Donations for family planning to the government, local authority, association or institution.
• If a company donates to the Indian Olympic Association or other Indian institutions/associations to develop sports infrastructure or sponsor sports within the country.

List of Eligible Donations for 50% Deduction Subject to 10% of Adjusted Total Income

The following list highlights donations eligible for a 50% deduction with a limit of 10% adjusted gross total income:

• Institution or fund meeting the criteria in Section 80G(5).
• Donation to the government or local authorities for charity, excluding family planning.
• Funds donated to arthritis developed in India for housing accommodation or improvement of cities, villages, or towns.
• Corporations mentioned in Section 10(26BB) are to promote the minority community.
• Donations for the renovation and repair of religious establishments, irrespective of the religion.

Mode of Payment Under Section 80G

Taxpayers can claim deductions under this section when they donate in the following payment modes:

• Cheque
• Cash (below ₹2,000)
• Demand Draft

In-kind donations, including food, materials, clothing, medicines, etc., as well as cash donations exceeding ₹2,000, are not eligible for deductions under Section 80G. To qualify for a deduction under Section 80G, donations above ₹2,000 must be made through modes other than cash.

Donations listed under Section 80G are eligible for deductions of either 100% or 50%, with or without restrictions, as specified in the section.

Claim your 80G deduction and reinvest that extra money into stable, fixed-income products for compounding growth!

How to Claim 80G Deduction?

A taxpayer can claim this deduction by submitting the following details in their income tax return (ITR):

• Name, address and PAN of the donee.
• The total amount of contribution, including the breakup in cash or other payment modes.

Further, you need to mention the above-mentioned details in the following tables of ITR:

• Table A: As a taxpayer, you need to fill in this table for donations eligible for a 100% deduction without a qualifying limit.
• Table B: This table needs to be filled in for donations eligible for a 50% deduction without a qualifying limit.
• Table C: You need to fill in this table for donations eligible for 100% deduction subject to the qualifying limit.
• Table D: As a taxpayer, you need to complete this form for donations eligible for a 50% deduction subject to the qualifying limit.

Adjusted Total Income Under 80G: Meaning

Adjusted gross total income refers to the summation of income from all heads and adjustments of the following heads:

• Short-term capital gains under Section 111A
• Deductions under Section 80C to 80U except Section 80G
• Exempted income
• Long-term capital gains
• Income under Sections 115A, 115AB, 115AC, 115AD and 115D

How to Calculate Deductions Under Section 80G

To claim your deduction on donations, it is important to follow a few key steps to ensure that you properly report your charitable contributions on your tax return. Here is a detailed guide to help you through the process:

1. Compute gross total income before applying any Chapter VI-A deductions.
2. Calculate adjusted total income by excluding other deductions, capital gains, and specified foreign incomes.
3. Find 10% of adjusted income, this is your qualifying limit for restricted donations.
4. Classify donations into: 100% or 50% without limit/100% or 50% with limit.
5. Apply deductions for "without limit" donations. For others, cap total at 10% of adjusted income, and apply 100% or 50% as applicable. 

Documents Required for 80G Deduction

You need to possess the following documents to claim deductions under Section 80G of the Income Tax Act, 1961:

• Details: Name, address, amount of contribution, PAN of the donee and the amount eligible for calculation need to be provided in an income tax return.
• Duly Stamped Receipt: You need to have a receipt from the trust or charity where you donate, mentioning your name, address, PAN number of the trust and the donated amount.
• Registration Number of Trust: All eligible trusts have a registration number that the Income Tax Department provides. Your donation receipt should contain the trust registration number.

Final Word

80G deduction applies to taxpayers making donations to charitable trusts, organisations and institutions registered under the Income Tax Department. As a taxpayer, you can be eligible for a 100% or 50% deduction with or without a qualifying limit. 

To ensure you can claim deductions during a financial year, make donations to eligible institutions. Notably, donating more than ₹2,000 in cash during a financial year will restrict claims. Ensure you donate using a cheque or demand drafts to claim deductions seamlessly. 

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