80G deduction on donations.
Eligible deduction
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Tax saved
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Not every rupee donated is deductible
Section 80G rewards charitable giving, but the relief is rarely the full amount you give. Donations fall into four buckets, and which one your charity sits in decides everything. Some funds qualify for a 100 percent deduction with no upper limit. Some give 50 percent with no limit. A large third group gives 100 percent but only up to a ceiling of 10 percent of your adjusted gross total income. And a fourth group gives 50 percent capped at that same 10 percent. The dropdown on this calculator maps to exactly these four categories.
The 100 percent uncapped basket is small and specific: the Prime Minister’s National Relief Fund, the National Defence Fund, the PM CARES Fund, the Swachh Bharat Kosh, and a few others. Most NGOs you donate to fall in the 50 percent category, often with the 10 percent income ceiling attached. Budget 2025 did not alter 80G rates, so the FY 2025-26 position is unchanged.
A ₹50,000 donation under the 50 percent rule
Suppose you donate ₹50,000 to a registered NGO that qualifies for 50 percent deduction without a cap, and you are in the 30 percent slab with an adjusted gross total income of ₹12 lakh. Only half the donation becomes a deduction.
| Step | Amount |
|---|---|
| Donation made | ₹50,000 |
| Deductible at 50% | ₹25,000 |
| Tax saved at 30% | ₹7,500 |
| Net cost of the ₹50,000 gift | ₹42,500 |
So a ₹50,000 donation costs you ₹42,500 after tax. The chart shows how the same ₹50,000 would be treated in a 100 percent versus a 50 percent fund: the category, not the amount, drives the deduction.
How the 10 percent income ceiling works
For funds in the capped categories, the deduction is computed only on the part of your donation that does not exceed 10 percent of your adjusted gross total income. If your adjusted income is ₹12 lakh, the ceiling is ₹1.2 lakh. Donate ₹2 lakh to such a fund and only ₹1.2 lakh qualifies; the rest gives no benefit at all. Adjusted gross total income here is your gross total income reduced by other Chapter VI-A deductions, long-term capital gains, and a few specific items, so it is usually a little lower than your headline income.
Documentation and the ₹2,000 cash rule
Two practical rules decide whether your claim survives scrutiny. First, any cash donation above ₹2,000 is disallowed outright, so pay larger gifts by cheque, UPI, or bank transfer. Second, since the donation reporting was tightened, the charity must issue you Form 10BE and report your donation, and the deduction in your return should match what the institution has filed. Keep the 80G certificate showing the institution’s registration number. A donation to an unregistered charity, however worthy, gives no deduction, and 80G is available only under the old regime.
Are donations to political parties covered under 80G?
No. Contributions to political parties or electoral trusts fall under Sections 80GGB and 80GGC, not 80G. Those are separate provisions with their own conditions, and like 80G they require non-cash payment.
Does giving to a temple or religious trust qualify?
Only if the trust holds a valid 80G registration. Many religious institutions are registered and issue 80G certificates, but some are not. Donations towards the renovation of certain notified places of worship have their own 50 percent treatment. Always check the certificate before assuming a deduction.
A planning angle, and why 80G should never be the whole reason to give
Because the deduction is at best your slab rate on the qualifying amount, 80G reduces the cost of giving, it never makes you money. A 30 percent taxpayer who donates ₹1 lakh to a 50 percent fund deducts ₹50,000 and saves ₹15,000 of tax, so the gift still costs ₹85,000 out of pocket. Treat the deduction as a discount on generosity, not an investment. If you do plan to give, two tactics help. First, route the donation to a 100 percent uncapped fund where the cause aligns, since every rupee then counts rather than half. Second, give before 31 March so the deduction lands in the same financial year; a donation made on 2 April pushes the benefit a full year out.
Since the reporting overhaul, the mechanics matter as much as the generosity. The institution files a statement of donations and issues you Form 10BE, and your claim in the return is matched against it. If the charity has not filed, or your PAN is recorded wrongly, the deduction can be denied even for a genuine gift, so verify that the certificate shows your correct PAN and the institution’s valid registration number before you rely on it.