How to save tax on donations under the new tax regime?

10/03/26

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Many people in India have now chosen the new tax regime because of low slab rates and easier tax filing. However, the new tax regime offers no deductions on taxable income for donations under Section 80G. 

At Bal Raksha Bharat (also known as Save the Children India), we work for the betterment of children across India, and every donation helps us write new success  stories across education, health, nutrition, and child protection. Through these donations, many taxpayers also plan their tax-saving needs. So it’s natural to ask a practical question before one contributes.

This guide will help you understand:

• How the donation tax benefit works in India
• What the new tax regime slabs offer
• Why donating matters despite no deduction under the new tax regime

Understanding the New Tax Regime and Its Impact on Donations

The New Tax Regime (i.e., Section 115BAC) is now the default option for taxpayers in India. It offers different slab rates that aim to reduce the need for multiple exemptions and deductions. However, under the new tax regime, Chapter VI-A deductions (including donations) cannot be claimed. There are a few exceptions, such as employer NPS contributions under Section 80CCD(2), as well as others listed by the Income Tax Department.

Key Differences: Old vs New Tax Regime for Taxpayers

Here’s a clear comparison between key features of the old and new tax regime.

New Tax Regime Slabs for FY 2025–26 (AY 2026–27)

Here are the new tax regime slabs for individuals (according to the tax rates document updated through Finance Act 2025). 

• Up to ₹4,00,000: Nil
• ₹4,00,001 to ₹8,00,000: 5%
• ₹8,00,001 to ₹12,00,000: 10%
• ₹12,00,001 to ₹16,00,000: 15%
• ₹16,00,001 to ₹20,00,000: 20%
• ₹20,00,001 to ₹24,00,000: 25%
• Above ₹24,00,000: 30%

It’s good to know: The standard deduction is available under the new regime (₹75,000 for salaried individuals), but the 80G donation benefit is left out.

Can You Claim Deduction Under New Tax Regime for Donations?

If you choose the new tax regime, you would not be able to claim a deduction under Section 80G for donations. That means, even if you donate to a valid NGO, it is not going to reduce your taxable income under the new tax regime exemption rules. However, donations made towards social causes still hold great value even if they don’t help with tax savings. At the end of the day, your contribution has the power to change someone’s life for the better, and that’s what matters. 

Tax Benefits on Donations – Only Possible in the Old Tax Regime

If you’re planning to donate only to save tax, you should choose the Old Tax Regime that allows Section 80G deduction. But you will need to understand how Section 80G works.

• Depending on the NGO, the deduction rate for donations can be 50% or 100% (with or without limits).
• For many donations, the claim may be subject to limits such as 10% of your adjusted gross total income, depending on the donation category.
• Cash donations above ₹2,000 are generally not allowed for 80G deduction. So, use other payment modes like online transfer or cheque.
• The Income Tax system also matches all donation claims with NGO filings (Form 10BD) and donation certificates (Form 10BE).

Smart Tip: If you donate a good amount for social causes every year, compare the tax payable both under the old and new regimes using the Income Tax calculator. Once you get the figures for both, choose the regime that offers maximum benefit.

How Bal Raksha Bharat Donations Qualify for 50% Tax Exemption (Old Regime)

All donations made to Bal Raksha Bharat supports various child welfare programmes across health, education, and protection. In the process it attracts 50% tax exemption under Section 80G of the old regime. All you have to do is share certain details like your name, PAN number, and complete address to get your donation certificate.

Why Donate to Bal Raksha Bharat Even in the New Tax Regime?

. Remember, donating to a social cause is a selfless act. One single donation has the power to change the life of a child. 

Donations make it possible for us to run community programmes,, Children gain access to care and their overall wellbeing is taken care off. So, even if there’s no tax benefit, donating can still create real, measurable change in a child’s life.

So, if you’re donating this year under the new tax regime, give importance to its impact first and tax benefits later. While the benefit from the donation may not show up as a deduction in your tax return, it shows up where it matters the most -to better the life of children in need. 

Conclusion

At Bal Raksha Bharat, our selfless endeavours have positively impacted the lives of more than 10 million children since 2004 through 60 programmes in education, healthcare, nutrition, protection, inclusion, resilience, disaster relief, and emergency preparedness. This is your chance to join hands with us and make a difference in the life of a child. 

FAQs: 

Is donation tax free in the new regime?

No, under the new tax regime, Section 80G deduction cannot be claimed for donations and they will not reduce your taxable income.

Can I claim deduction under the new tax regime under 80G?

No, Section 80G deduction is not allowed for the new tax regime.

Should I switch from the new tax regime to old for tax savings on donations?

Yes, you can but only if you donate a good amount every year and want tax benefits, since 80G deductions are applicable only under the old tax regime. 

What are the new tax regime slabs and how do they compare?

For FY 2025–26 (AY 2026–27), the new regime slabs start at nil and go up to ₹4 lakh in steps, like 5%, 10%, 15%, 20%, 25%, and 30%). In comparison, the old regime uses the older slab system of 2.5L, 5L, and 10L.

Is there any way to save tax in the new regime?

Yes, you can still save tax under the new tax regime but not through donations under Section 80G. The new tax regime only allows claiming deductions for certain limited items like standard deduction (for up to ₹75,000 for salaried individuals) and a few specified deductions as listed by the Income Tax Department.

Naveen Kumar

“Naveen is an SEO expert and digital marketing analyst at Bal Raksha Bharat with a passion for helping businesses grow online. With a data-driven approach, he specializes in boosting search rankings, driving traffic, and optimizing digital strategies. Follow for tips on SEO, content, and marketing trends."