When we donate to a good cause, we feel happy from inside. But did you know that your donations can also help you save income tax? Under the Income Tax Act Section 80G, you can claim deductions for the donations you make to eligible trusts, NGOs, and charitable institutions.
In this blog, let us understand how Section 80G works in 2025, which donations qualify, how much deduction you can claim, and the simple steps to save tax while doing good for society.
Table of Contents
What is Section 80G?
Section 80G of the Income Tax Act provides tax deductions for donations made to certain funds and charitable organizations. The government introduced this section to encourage people to support social welfare, relief funds, and community services.
When you donate, you not only contribute to a noble cause but also get relief from income tax on a portion of the donated amount.
Who Can Claim Deduction Under 80G?
Any taxpayer – individual, company, firm, or HUF (Hindu Undivided Family) – can claim deduction under Section 80G, provided the donation is made to a fund or institution approved by the Income Tax Department.
Important Point: Donations in cash above ₹2,000 are not allowed for deduction. So, always donate through cheque, bank transfer, or UPI to claim 80G benefit.
Types of Donations Under 80G
The donations eligible under Section 80G are divided into two main categories:
1. 100% Deduction (Without Limit)
Donations made to certain funds qualify for full 100% deduction, such as:
- Prime Minister’s National Relief Fund
- PM CARES Fund
- National Defence Fund
- Clean Ganga Fund
If you donate ₹10,000 to these funds, you can claim the full ₹10,000 as deduction.
2. 50% Deduction (With or Without Limit)
Some donations qualify for only 50% deduction, and in certain cases, the deduction is restricted to 10% of your adjusted gross total income. Examples include:
- NGOs and charitable trusts
- Approved educational institutions
- Local authority donations for family planning
For example, if you donate ₹20,000 to a registered NGO, you may be eligible to claim ₹10,000 (50%) subject to the income limit.
Documents Required to Claim 80G Deduction
To claim your tax benefit, you must keep the following documents ready:
- Donation receipt – with donor name, amount, PAN, and registration number of the trust.
- Form 10BE – a certificate issued by the charitable institution with details of your donation.
- Payment proof – bank statement, UPI transaction, or cheque copy.
Without these, your claim may get rejected during ITR filing.
Example to Understand
Suppose your taxable income is ₹8,00,000 in FY 2024-25.
- You donate ₹20,000 to PM CARES Fund (100% eligible).
- You also donate ₹10,000 to a local registered NGO (50% eligible).
Tax Deduction Calculation:
- From PM CARES Fund: ₹20,000 (100%)
- From NGO: ₹5,000 (50%)
- Total Deduction = ₹25,000
So, your taxable income becomes ₹7,75,000 (₹8,00,000 – ₹25,000).
Key Points to Remember in 2025
- Only donations to approved funds and NGOs are eligible.
- Cash donations above ₹2,000 are not allowed.
- Keep Form 10BE and receipts safe for ITR filing.
- Donation benefit can be claimed under both Old and New Tax Regime (but only if deductions are allowed in the chosen regime).
Why Use Section 80G?
- Social Impact – Your money helps in education, health, disaster relief, and poverty removal.
- Tax Saving – Reduce taxable income and save money.
- Easy Process – Just donate digitally, get a receipt, and claim in ITR.
Final Words
Donations are not just about tax benefits – they are about giving back to society. But at the same time, it feels good to know that the government supports your contribution by providing tax relief under Section 80G.
So in 2025, if you want to save tax smartly and make a difference in someone’s life, donate to an eligible fund or NGO. Keep your receipts, file your ITR correctly, and enjoy the dual benefit of helping others and saving tax.
Contact taxgiveindia.com for taxation related services.