80G Donation Tax Deduction: A Guide for Donors

What is the 80G deduction?

Section 80G of the Income Tax Act, 1961 gives a deduction, while computing your total income, for donations made to certain funds and charitable institutions. It is a deduction from income, not a refund of the donation and not a reduction in tax rupee for rupee. If part of your donation is deductible, your taxable income falls by that amount, and the tax saved depends on your slab.

Any taxpayer can claim it, including individuals, Hindu Undivided Families, firms and companies, provided they have taxable income and the donation goes to an eligible fund or approved institution. A donation to a trust that does not hold a valid approval does not qualify, however good its work may be.

Which law applies: the 1961 Act or the 2025 Act?

According to the e-Filing portal's form mapping guide, the Income-tax Act, 2025 is effective from 1 April 2026, and forms under the new Act are filed from that date. The department's Section 80G FAQ, on which this guide is based, is written for the 1961 Act, which applies to donations made up to 31 March 2026 (the financial year 2025-26). For donations made from 1 April 2026 (tax year 2026-27 onwards), the 2025 Act applies; the e-Filing portal's form mapping guide refers to approval for this deduction under section 133(1)(b)(ii) of the 2025 Act.

The forms have also been renumbered. According to the e-Filing portal's form mapping guide, the trust's statement of donations (old Form 10BD) is now Form 113, and the donor's certificate of donation (old Form 10BE) is now Form 114. The ideas below are explained using the familiar 80G terms; if you are claiming for tax year 2026-27 or later, check the current rules on the Income Tax Department's e-Filing portal or with a chartered accountant, because details can differ between the two Acts.

The four deduction categories

The Income Tax Department's FAQ on Section 80G groups eligible donations into four categories:

Most private charitable trusts, including trusts that run clinics, schools or welfare programmes, fall in the last category. In simple terms, half of what you give is deductible, and the total deduction for this group of donations cannot exceed 10% of your adjusted gross total income. Adjusted gross total income is your gross total income reduced by your other Chapter VI-A deductions, exempt income, long-term capital gains, short-term capital gains under section 111A and certain special incomes. Any amount above the limit is simply ignored and cannot be carried forward.

How you pay matters: cash and donations in kind

Two payment rules catch many donors out:

• Cash above two thousand rupees does not qualify. Under section 80G(5D), no deduction is allowed for any donation exceeding two thousand rupees unless it is paid by a mode other than cash. Cheque, demand draft, UPI, net banking and cards are all non-cash modes.
• Only money counts. The deduction is allowed only for monetary donations. Giving medicines, food, clothes, beds or equipment can be generous and useful, but it does not create an 80G claim.

If tax benefit is important to you, pay through a bank channel and keep the transaction reference. Paying through a trust's official online donation page also gives you a clear record of the date and amount.

Old regime versus new regime

The department's FAQ is direct: the 80G deduction cannot be claimed if you opt for the new tax regime under section 115BAC of the 1961 Act. That FAQ is written for the 1961 Act. For donations from 1 April 2026, check on the e-Filing portal, or with a chartered accountant, whether the regime you choose under the 2025 Act allows a donation deduction before relying on one. Compare your total tax under both regimes before deciding; for many salaried taxpayers a donation alone will not change which regime is cheaper.

Papers to keep: receipt, PAN and Form 10BE

When you donate, give the trust your correct name, address and PAN (or Aadhaar number), because the trust reports each donor to the Income Tax Department. The department's FAQ lists the details you need to claim the deduction:

• A donation receipt from the trust
• The name and PAN of the trust (the donee)
• The address of the trust
• The trust's registration number under 80G
• The amount donated

Approved institutions must also file a statement of donations, Form 10BD, by 31 May following the financial year in which they received the donation. After filing, they download a certificate of donation, Form 10BE, for each donor. Under the 2025 Act these are Form 113 and Form 114. The deduction you claim in your return must match what the trust reported, so a mismatch in PAN or amount can lead to your claim being questioned.

If you have not received the certificate by early June, ask the trust for it before you file your return.

How to claim the deduction in your return

1. Choose the old tax regime for the year (see above).
2. In your income tax return, open the section for deductions and select the donations schedule (Section 80G in the 1961 forms).
3. Enter the trust's name, address and PAN, the amount donated, the mode of payment and the category of deduction.
4. Enter the ARN or certificate details from Form 10BE where the form asks for them.
5. Keep the receipt, certificate and bank record with your tax papers in case of a query.

How to check a trust before you donate

The department advises donors to verify the trust themselves. A few practical checks:

• Ask for the trust's PAN and its 80G approval number, and the period for which the approval is valid. Donations made after an approval is cancelled or has expired are not eligible.
• Look the trust up in the Income Tax Department's exempted institutions utility, linked in the sources below.
• Read how the trust is governed. Our trust deed and the list of our executive body members are published on this website.
• Ask what your money will be used for. You can read about our mission and work in Kota Division and the planned Millat Charitable Hospital.

Donating to Millat Charitable Trust

If you choose to support us, please donate through our official donation page or by bank transfer rather than in cash, and share your PAN with us so your donation can be reported correctly. For a receipt, or to ask about the donation certificate, write to the email address shown in the footer of this page or use our contact form. We do not provide tax advice; for your own return, please rely on the official sources below or your tax adviser.