Section 80G Donations

Key decisions

1. Q1

   What's the difference between 100% and 50% deduction?

   100% DEDUCTION (Category A): full amount donated reduces taxable income. List: PM CARES Fund, PM National Relief Fund, National Defence Fund, National Children's Fund, Chief Minister's Relief Funds, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation, National Sports Fund, National Cultural Fund. Most state CM's funds also qualify. 50% DEDUCTION (Category B): half of donated amount reduces taxable income. Most NGOs/trusts fall here — Akshaya Patra, CRY, GiveIndia partners, Goonj, Helpage India, etc. AGI cap (10% of Adjusted Gross Income) applies to some Category B donations — verify per institution's 80G certificate.

2. Q2

   What's the cash donation limit?

   Cash donations > ₹2,000 do NOT qualify for 80G deduction (Section 80G(5D), introduced FY 2017-18 to curb cash-funded political donations). Make all > ₹2K donations via cheque / NEFT / RTGS / UPI / debit card / credit card. Smaller cash donations (< ₹2K) still qualify but require receipt. PROOF REQUIRED for ITR claim: 80G receipt OR certificate showing institution's PAN + name + amount + date + 80G registration number. Donations via approved e-platforms (GiveIndia, ImpactGuru, KETTO) issue digital 80G receipts auto-emailed within 24h.

3. Q3

   What's the 10% AGI cap mechanic?

   Some Category B donations are 'Subject to qualifying limit' — total such donations exceeding 10% of Adjusted Gross Total Income (AGTI) cannot be claimed in that FY. Excess CAN be carried forward 7 years (Section 80G(4)). AGTI = Gross Total Income MINUS deductions u/s 80C/80CCC/80CCD(1)/80D/80DD/80DDB/80E/80EE/80EEA/80GG/80GGA/80U. Example: AGTI ₹20L → 10% cap = ₹2L. Donations of ₹5L to a Category-B-with-cap institution = ₹2L claimed this year (with 50% deduction = ₹1L actual deduction) + ₹3L carried forward. 100% Category A + some specific Category B are 'without qualifying limit'.

4. Q4

   How to verify if an NGO is 80G-registered?

   Three sources: (1) NGO's website typically lists PAN + 80G registration number + validity period. (2) Income Tax Department's public registry — incometax.gov.in → 'Charity Status' → search by PAN or name (returns 80G validity + 12A registration). (3) Donation platforms (GiveIndia, ImpactGuru, KETTO, Milaap) only host 80G-registered NGOs. CRUCIAL: 80G certificate now has 5-year validity (was 'lifetime' pre-2020) — older NGOs need re-application. If their 80G validity has expired, your donation IS NOT deductible even with a receipt. ITR pre-fill engines check 80G validity by PAN — invalid auto-rejects.

5. Q5

   New regime + 80G — what's the impact?

   NEW REGIME DISALLOWS 80G entirely (along with 80C, 80D, 80E, 24(b), HRA, etc.). If you donate ₹50K to charity in new regime: ₹0 tax deduction. Only allowed deductions: standard ₹75K salary + Sec 80CCD(2) employer NPS. Decision math: ₹50K Category A (100%) donation saves ₹15K tax @ 30% slab in OLD regime. In NEW regime, you'd need to compare overall tax — old regime with ₹50K deduction may beat new regime even if other deductions are modest. Run both via Old vs New calculator before donating + filing — many donors are unaware that switching regimes makes their charity effectively cost more.