ITR Filing 2025: Are all donations 100% exempted from tax under old regime? Know here

Donating to a charity or a non-profit organisation comes under Section 80G of the Indian Income Tax Act. Under this, taxpayers can claim deductions of up to 100 per cent or 50 per cent of the amount donated. There is no maximum limit for claiming under this section.

The categories for tax deduction, based on whom you donated to are as follows:

1. Donations are entitled to a 100% deduction without a qualifying limit.

2. Donations are entitled to a 50% deduction without a qualifying limit.

3. Donations are entitled to a 100% deduction, subject to the qualifying limit.

4. Donations are entitled to a 50% deduction, subject to the qualifying limit.

You need to check the deduction limit on your donation receipt and claim deduction accordingly while filing your return.

What mode of payment should you use for a donation?

If you are making a cash payment, then only up to Rs 2,000 is allowed to donate. Otherwise, you should make an online payment, demand draft, or cheque.

Documents required to claim deduction under Section 80G

• Name of the donee
• PAN
• Address
• Donation amount
• The amount eligible for deduction
• Duly stamped receipt
• Registration number of the trust

List of donations eligible for 100% deduction (without a qualifying limit)

• National Defence Fund set up by the Central Government
• Prime Minister’s National Relief Fund and PM CARES fund
• National Foundation for Communal Harmony
• An approved university/educational institution of National eminence
• Zila Saksharta Samiti is 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 concerning any state or union territory
• and many others

Prime Minister’s Drought Relief Fund is eligible for a 50 per cent deduction without a qualifying limit.

List of donations eligible for 100% deduction (10% of adjusted gross total income)
Donations to the Indian Olympic Association or any other notified association or institution established in India to sponsor sports and games in India, or donations to the government or any authorised local authority, institution, or association to be used to promote family planning.

List of donations eligible for 50% deduction (10% of adjusted gross total income)

• Any other fund or organisation meets the requirements outlined in Section 80G (5).
• To be used for any charitable purpose other than promoting family planning by the government or any local authority.
• Any Indian authority established to address and meet housing needs or to plan, develop, or enhance cities, towns, villages, or both.
• Any company mentioned in Section 10(26BB) for advancing minority community interests.
• For any notified temple, mosque, gurudwara, church, or other location that needs repairs or renovations.

FAQs

Can a partnership firm claim a deduction under Section 80G?
Yes, all individuals, companies, and firms can claim a deduction under Section 80G.

Can I claim a donation of Rs 5,000 in cash?
Individuals can only claim up to Rs 2,000 donation made in cash.

Can a non-resident claim a deduction under Section 80G?
Yes, both residents and non-residents can claim deductions under Section 80G.

Section 80G deductions are allowed in the new tax regime?
No, this is allowed only in the old regime.

Do donations in kind qualify for deduction under Section 80G?
No, donations in kind do not qualify for deductions under Section 80G.