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Income Tax Filing 2025: The old income tax regime offers taxpayers some exemptions under various sections. One of such tax exemptions that taxpayers can avail is the tax exemption on donations under 80G of the Income Tax Act. It means if you donate a particular amount to any registered organization (it must be registered under Section 80G), you can opt for tax exemptions for the donations while filing your income tax returns. However, there are some rules and measures that you must follow.
As due date for filing income tax return for FY2024-25 (Assessment year 2025-26) is approaching, taxpayers must hurry to complete their tax duties.
New income tax regime has removed these tax exemptions by increasing the tax liability limit.
Donations Under Section 80G Has 100% or 50% Deduction
Section 80G is designed to encourage philanthropy by rewarding taxpayers who contribute to approved causes. Depending on the recipient organization, the deduction can be either 100% or 50% of the donated amount. Some donations, such as those to the Prime Minister’s National Relief Fund or the National Defence Fund, qualify for a full deduction without limits. Others, like contributions to certain charitable institutions or drought relief funds, are eligible for a 50% deduction.
What You Need To Claim Deductions?
To claim the benefit, donors must ensure the recipient organization is registered under Section 80G. A valid receipt containing the organization’s details, its registration number, the donor’s details, and the donation amount is essential. Additionally, donors must obtain Form 10BE from the receiving organization, which serves as official proof for claiming the deduction. The form must match the donation records and be downloaded from the Income Tax Department’s e-filing portal.
Donations can be made via cheque, demand draft, or cash (up to Rs 2,000). Contributions in kind or cash donations above Rs 2,000 do not qualify. When filing the ITR, taxpayers must enter donation details in the Section 80G column, along with proof, in case of scrutiny.
While certain donations have no upper limit, others are capped at 10% of the donor’s adjusted gross total income. For example, family planning donations to the government or sports development contributions by companies are subject to this limit.
80G Deduction Limits
Funds eligible for 100% deduction without qualifying limit
- Prime Minister’s National Relief Fund National Defence Fund set up by the Central Government
- National Foundation for Communal Harmony
- An approved university/educational institution of National eminence
- Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district Fund set up by a state government for medical relief to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or any State Blood Transfusion Council
- National Trust for Welfare of Persons with Autism, Cerebral Palsy,
- Mental Retardation, and Multiple Disabilities
- National Sports Fund
- National Cultural Fund
- Fund for Technology Development and Application
- National Children’s Fund
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund for any State or Union Territory
- 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
- The Maharashtra Chief Minister’s Relief Fund during October 1, 1993, and October 6, 1993
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
- Any trust, institution, or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made between January 26, 2001, and September 30, 2001)
- Prime Minister’s Armenia Earthquake Relief Fund Africa (Public Contributions – India) Fund Swachh Bharat Kosh (applicable from FY 2014-15)
- Clean Ganga Fund (applicable from FY 2014-15)
- National Fund for Control of Drug Abuse (applicable from FY 2015-16)
Funds eligible for a 50% deduction without qualifying limit
Donations made to the Prime Minister’s Drought Relief Fund are eligible for a deduction of 50%.
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