As per Taxmann, the updated forms have added new disclosure fields in Schedule 80G, which covers deductions claimed for donations made to specified funds, charitable institutions and relief organisations under Section 80G of the Income Tax Act, 1961.
The move is aimed at improving traceability of donations and verification of claims.
What has changed
Under the revised format, taxpayers are now required to report:
- Transaction reference number for payments made via UPI or banking channels such as cheque, IMPS, NEFT and RTGS
- Indian Financial System Code (IFSC) of the bank through which the donation was made
These fields have been introduced in addition to existing requirements such as the name, PAN and complete address of the donee, along with details on the nature of donation, applicable limits and eligible deduction percentage.Why the additional disclosure
According to Taxmann, the expanded reporting framework is intended to ensure that donations claimed for tax deductions are verifiable and routed through identifiable financial channels.
By capturing transaction-level data, the forms seek to reduce mismatches and limit the scope for incorrect or unsupported claims.
Impact on taxpayers
The changes mean taxpayers will need to retain and report detailed payment records for donations if they intend to claim deductions. This applies across contributions made to eligible charitable institutions as well as specified funds under Section 80G.
Political donations also in focus
The updated ITR forms also seek more detailed information for donations made to political parties, which are eligible for deduction under Section 80GGC, subject to conditions. Contributions made through banking channels, including digital modes, continue to qualify under the old tax regime.
There is no specific cap on the deduction amount for political donations under Section 80GGC; however, the claimed deduction cannot exceed the taxpayer’s total income.
