How to claim tax deduction on donations under section 80g in 2026

14/07/24

Blog

2027

Donation exemption allows a taxpayer to arrive at a lower level of assessable income. This is made possible by section 80G of the Income Tax Act, which enables you to donate and save tax. This Section of the Income Tax Act demonstrates how the Government of India has successfully leveraged tax mechanisms to encourage tax compliance, incentivised charity and donation to NGO tax exemption, and provided citizens with a pathway to reduce their net taxable income.

What is Section 80G of the Income Tax Act?

The Income Tax Act section 80G enables taxpayers to receive tax deductions when they donate to approved charitable organizations and non-profit entities. The law enables taxpayers to decrease their tax obligations through their charitable contributions. Taxpayers can deduct their donation amount from taxable income at either 50 percent or 100 percent depending on the organisation type and the specific provisions of the Act.

The Section provides financial incentives to encourage charitable giving, which enables direct funding of social programs that support education, healthcare, nutrition, and children’s protective services. Donors can use their knowledge of Section 80G to plan their charitable contributions to achieve both tax benefits and child welfare outcomes.

Who Can Claim Tax Deductions Under Section 80G?

The stated deductions can be claimed by individuals Hindu Undivided Families (HUFs), and companies, who all can donate and save tax. The deductions work in such a way that they bring down the donor’s taxable income; in the process, they also can reduce the tax slab under which someone’s income falls, another benefit. 

Deductions under Section 80G can be claimed by:

1. Individuals – salaried or self-employed taxpayers.
   
2. Hindu Undivided Families (HUFs) – joint family units recognised under the Income Tax Act.
   
3. Companies – corporate entities making donations to eligible charitable organisations.
   

These deductions reduce taxable income and may potentially lower the tax slab under which an individual or entity falls. Additional benefits include:

• Reducing the overall tax burden for donors.
  
• Encouraging consistent support for social initiatives.
  
• Supporting institutions aligned with child welfare, education, healthcare, and community development.

It is important for donors to ensure that the NGO or charitable institution is registered under Section 80G to qualify for tax deductions.

Step-by-Step Process to Claim Deduction Under Section 80G

For those interested in how to save tax in India through donations, the following steps provide a clear guide:

1. Verify Eligibility: Ensure that your donation qualifies under Section 80G and that you are eligible for the deduction.
   
2. Obtain a Receipt: Request a written acknowledgement for the donated amount, including your name, contact information, and details of the charity such as registration number and address.
   
3. Check Deduction Limits: Confirm whether the donation qualifies for a 50 per cent or 100 per cent tax deduction.
   
4. Calculate Deduction: Determine the amount allowed as a deduction from taxable income.
   
5. Report in ITR Filing: Declare the deduction while filing your Income Tax Return, providing necessary details such as PAN, TIN, and the name of the Managing Trustee as per Section 80G.
   
6. Maintain Documentation: Retain all receipts and supporting documents for verification and tax purposes.

Required Documents and Proof for 80G Claims

To successfully claim a deduction, donors must provide:

• Donation receipt issued by the NGO with name, PAN/TIN, and donation details.
  
• Certificate under Section 80G (Form No. 10BE) from the charitable organisation.
  
• Bank transfer evidence if donations are made through cheque, online transfer, or draft.
  
• Cash receipts for donations up to Rs. 2,000.
  

Maintaining accurate records ensures smooth verification and audit processes.

How Much Deduction is Allowed Under Section 80G?

The deduction allowed depends on the type of donation and organisation:

• 50 per cent deduction: Applicable for donations to most registered NGOs, including Bal Raksha Bharat, subject to a limit of 10 per cent of adjusted gross total income.
  
• 100 per cent deduction: Applicable to certain government-backed or special charitable institutions.
  

Adjusted gross total income refers to the total income minus exempt income and other deductions under Chapter VIA of the Income Tax Act. Proper understanding of these limits helps donors maximise their benefits while supporting social causes.

How to Claim 80G Deduction While Filing ITR

Donors can follow these steps to claim deductions in their Income Tax Return:

1. Select the donation exemption section in the ITR form.
   
2. Enter the name, PAN/TIN, and address of the NGO.
   
3. Provide details of the donation amount and the receipt number.
   
4. Attach the Form 80G certificate issued by the organisation if required.
   
5. Submit the ITR with the deduction details included.
   

This ensures that donations are accounted for, and the tax benefit is availed without complications.

Save Taxes by Donating to Bal Raksha Bharat Under 80G

Donating to Bal Raksha Bharat not only supports child welfare initiatives but also offers tax benefits. The organisation is eligible under Section 80G of the Income Tax Act. Donations to Bal Raksha Bharat allow donors to deduct 50 per cent of the donation from their taxable income, subject to 10 per cent of the adjusted gross total income.

Donations can be made via cheque, draft, or online transfer. Cash donations qualify only up to Rs. 2,000. Bal Raksha Bharat ensures compliance with Section 80G by filing the Statement of Donations Received (Form No. 10BD) and issuing Certificates to Donors (Form No. 10BE) annually by 31 May.

Supporting Bal Raksha Bharat enables donors to contribute to education, healthcare, nutrition, protection, inclusion, resilience, disaster relief, and emergency preparedness for children, while also reducing tax liability. Collaborating with a tax professional ensures that deductions are accurately applied in alignment with broader financial planning.

Giving to Bal Raksha Bharat nurtures a sense of purpose, empowering communities and children, while offering dual benefits of social impact and tax savings.

Conclusion

Claiming tax deductions under Section 80G allows donors to combine social responsibility with financial prudence. Contributions to organisations like Bal Raksha Bharat facilitate child welfare initiatives while providing significant tax benefits. By following the correct procedures and maintaining proper documentation, donors can maximise their impact, support vital programmes, and enjoy the advantages of reduced taxable income. In 2026, giving is both rewarding and strategic, enabling donors to make a difference while planning efficiently for their financial future.

Frequently Asked Questions (FAQs)

How do I claim donations under 80G?

Claim donations by obtaining a receipt and certificate from a registered NGO and declaring the donation in your Income Tax Return under Section 80G.

How to calculate 80G deduction with an example?

If you donate Rs. 10,000 to Bal Raksha Bharat with 50 per cent deduction, Rs. 5,000 can be claimed as a deduction from taxable income.

How do you know if 80G is 50% or 100%?

The NGO’s 80G certificate specifies whether donations qualify for 50 per cent or 100 per cent deduction.

Is there a limit on cash donations for claiming 80G deduction?

Yes, cash donations are eligible for deductions only up to Rs. 2,000; larger donations should be made via cheque, draft, or online transfer.

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."