Definition
Section 80G
Section 80G allows a deduction for donations made to approved charitable institutions and certain relief funds.
Donations under Section 80G are deductible either at 100% or 50% of the amount given, and some donations are subject to a ceiling linked to your adjusted gross total income while others have no upper limit. Contributions to funds such as the PM National Relief Fund typically qualify for the full 100% benefit.
To claim the deduction you need a valid receipt with the institution's registration number, and donations above a small threshold must be made by a mode other than cash. The institution generally must report your donation so it reflects in your AIS.
Like most chapter VI-A deductions, 80G is available under the old regime only, so weigh it against the lower slab rates of the new regime when filing.
Related terms
- Section 80CSection 80C allows a deduction from taxable income for specified investments and expenses, such as EPF, PPF, ELSS, life insurance premiums and home-loan principal, under the old regime.
- Old vs New Tax RegimeIndia offers two personal income-tax regimes: the old one with various deductions and exemptions, and the new one with lower slab rates but most exemptions removed.
- Annual Information Statement (AIS)The AIS is a comprehensive statement of a taxpayer's financial transactions reported to the tax department, used to help file accurate returns.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.