While the deduction provisions under Section 80G remain unchanged, taxpayers claiming the benefit will need to ensure that the required certificates and payment details are available while filing their returns.
Here is a step-by-step breakdown of what taxpayers need to know before they file.
What section 80G covers
Section 80G allows a deduction for donations made to eligible charitable institutions, trusts, and government relief funds. Depending on the recipient, donations qualify for either a 100% or 50% deduction, and in some cases this benefit is capped at 10% of the donor’s adjusted gross total income. Unlike Section 80C, there is no single overarching ceiling on how much can be claimed under 80G, the limits vary institution by institution.
The deduction is available only under the old tax regime. Taxpayers opting for the new tax regime under Section 115BAC cannot claim deductions under Section 80G.
Donations above ₹2,000 must be made through banking channels
Section 80G does not allow deductions for cash donations exceeding ₹2,000. To qualify for the deduction, such donations must be made through banking or digital payment modes such as cheque, bank transfer, UPI, net banking or debit and credit cards.
Taxpayers should also retain the payment proof and donation receipt while filing their return.
Form 10BE is required for claiming the deduction
Taxpayers claiming a deduction under Section 80G should ensure they have Form 10BE, the donation certificate issued by the charitable institution.
Before issuing Form 10BE, the recipient institution is required to furnish details of donations received during the financial year through Form 10BD. The statement includes the donor’s name, PAN, address and donation amount. Based on this filing, Form 10BE is generated for each donor.
The Income Tax Department matches the deduction claimed in the return with the information reported through Forms 10BD and 10BE. Any mismatch between the two may result in the deduction being disallowed during return processing or the claim being selected for further verification.
For FY 2025-26, charitable institutions were required to file Form 10BD by May 31. Form 10BE is generated only after this filing.
Under the Income-tax Act, delay in furnishing Form 10BD attracts a fee of ₹200 per day. In addition, the assessing officer may levy a penalty ranging from ₹10,000 to ₹1 lakh, subject to the applicable provisions of the Act.
Additional disclosures in ITR forms
The ITR forms notified for assessment year 2026-27 require taxpayers claiming a deduction under Section 80G to furnish additional information relating to the donation.
These include the transaction reference number for payments made through UPI, IMPS, NEFT or RTGS, the IFSC code of the bank through which the donation was made, and, in the case of donations reported under Table D of Schedule 80G, the ARN (donation reference number) of the recipient institution.
These disclosures enable the Income Tax Department to verify deduction claims using the information furnished by charitable institutions.
How to claim the deduction
Taxpayers intending to claim a deduction under Section 80G should first ensure they are filing their return under the old tax regime, as the deduction is not available under the new regime. Before filing the return, they should keep the donation receipt and Form 10BE ready.
While completing Schedule 80G in the income tax return, taxpayers need to report the eligible donation under the relevant category, along with details such as the amount donated, mode of payment, transaction reference number and the IFSC code of the bank through which the payment was made.
Schedule 80G is divided into four categories based on the nature of the deduction. Table A covers donations eligible for 100% deduction without any qualifying limit, while Table B relates to donations eligible for 50% deduction without any qualifying limit. Table C covers donations eligible for 100% deduction subject to the qualifying limit, and Table D covers donations eligible for 50% deduction subject to the qualifying limit.
Taxpayers filing ITR-2 and ITR-3 are also required to separately disclose the total deduction claimed under Section 80G in the relevant field of the return.
Before submitting the return, taxpayers should ensure that the information entered matches the details mentioned in Form 10BE.
Other points to keep in mind
Expenditure incurred towards Corporate Social Responsibility (CSR) under the Companies Act, 2013, is not eligible for deduction under Section 80G.
Similarly, donations made to political parties are not covered under Section 80G. Such contributions are governed by Sections 80GGC and 80GGB, subject to the conditions and disclosure requirements prescribed under those provisions.
As per the current schedule, the due date for filing income tax returns for most individual taxpayers and Hindu Undivided Families (HUFs) not liable for tax audit is July 31.
