Section 80G: Deduction for Donation to charitable organisations

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Hiral Vakil

Chapter VI-A
HUF
ITR-1
Section 80G

Section 80G of the Income Tax Act allows a deduction for any contribution made to certain relief funds and charitable institutions. This deduction can be claimed by individuals, HUFs and businesses. However, not all donations are eligible for deductions under section 80G. Only donations made to prescribed funds by the government of India qualify as a deduction.

Want to know what other tax deductions you can claim?
Read our article to understand the different types of tax deductions available to you and how to avail them.
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Want to know what other tax deductions you can claim?
Read our article to understand the different types of tax deductions available to you and how to avail them.
Read More

How to claim deduction u/s 80G?

Section 80G are available to all the types of taxpayers.

Even the mode of payment is an important thing while considering deductions. The deductions can only be claimed when the mode of payment is Cheque or Draft or Cash. However, the cash payment exceeding Rs. 10,000 is not deductible. Similarly, other materials such as food, clothes, or medicines are not considered for deductions under Section 80G.

In order to claim the deduction under Section 80G for a contribution, one needs to submit the following details:

Eligibility for deduction u/s 80G

Deduction for donation under 80GG

Tax Deduction on Donation

List of funds eligible for deduction u/s 80G

Donations with 100% Income Tax Deduction without any qualifying limit:

Donations with 50% Income Tax Deduction without any qualifying limit.

Donations with 100% Income Tax Deduction subject to 10% of adjusted gross total income

Donations with 50% Income Tax Deduction subject to 10% of adjusted gross total income

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FAQs

Can I claim deduction for a donation made in cash for Rs. 25,000

As per the Income Tax Act, any contribution made by cash in excess of Rs. 10,000 will not be allowed as deduction u/s 80G. So you can claim a maximum deduction of Rs. 10,000 for cash donations.

What is the limit for deductions allowed u/s 80G?

There is no upper limit set under section 80G for claiming a deduction for donations made to charitable organizations. As long as you have taxable income to claim a deduction from, there is no limit on the amount of deduction to be claimed u/s 80G.

Can I claim a deduction for a donation made through cheque worth Rs. 50,000?

Yes, you can. There are no limits for contributions made through cheques.

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