80G tax deduction on donations, explained simply

Section 80G of the Income Tax Act lets you reduce your taxable income when you donate to an eligible organisation. It is the single most misunderstood part of giving in India, so here is the honest version.

The basics

When you donate to an NGO that holds a valid 80G certificate, you can claim a percentage of that donation as a deduction from your taxable income. The percentage depends on the category the recipient falls in — for most private NGOs, the deduction is 50% of the donated amount, subject to a cap of 10% of your adjusted gross total income. A smaller set of government-notified funds qualifies for 100%.

The catch most donors miss: the tax regime

The deduction is only available under the OLD tax regime. If you file under the new regime — which is now the default — you cannot claim 80G at all (with a narrow exception for certain notified funds). If tax savings are a meaningful part of why you give, check which regime you are filing under first.

The paperwork changed in 2021

You can no longer just attach a donation receipt. The NGO must file your donation with the tax department (Form 10BD), and issue you a Form 10BE certificate — that certificate, not the receipt, is what supports your claim. Practical implications:

• Donate with your PAN, and give it to the NGO — without it they cannot file Form 10BD for you.
• Expect the 10BE certificate after the financial year ends (NGOs must issue it by 31 May).
• Cash donations above ₹2,000 do not qualify. Pay digitally or by cheque.

How to check an NGO's 80G status

Ask for the 80G certificate number and validity period — genuine NGOs share this without fuss, and many print it on the donation page itself. Certificates are renewable, so an NGO that had 80G years ago may not have it today.

A worked example

You earn ₹12 lakh of taxable income, file under the old regime, and donate ₹10,000 to an NGO in the 50% category. You can deduct ₹5,000 from your taxable income — at a 30% slab, that is roughly ₹1,500 less tax. The donation still costs you money; 80G softens it, it does not make giving free.

The honest disclaimer

Tax rules change and your situation is your own. This guide describes the general mechanics as of mid-2026 — for anything material, confirm against incometax.gov.in or ask a chartered accountant. Daan does not provide tax advice, and we currently do not process donations at all: you give directly on the NGO's own site, and the NGO issues your certificate.

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