80G Tax Exemption – Complete Guide on Donation Deductions

Key Takeaways

• Donations eligible under Section 80G can reduce your taxable income by 50% or 100% which depends on the approved institution as specified under the Income Tax Act. For example, a ₹10,000 eligible donation can lower tax by up to ₹3,000 for someone in the 30 percent slab.
   
• Donations made in cash above ₹2,000 are not allowed for deduction under 80G, as per Income Tax Department rules. Payments must be made through banking channels to remain valid.
   
• The 80G donation limit for salaried person helps you avoid donating beyond the amount that provides a tax benefit, ensuring better financial planning without wastage.

Most people see donations as money going “out,” but under Section 80G, that money actually helps bring your tax bill down. It’s the closest thing to a win-win in the tax code. You help a charity, and the government rewards you with a deduction. Are you keeping track of your receipts, or are you leaving your tax “thank you” on the table?

80G tax exemption means you receive tax relief when you donate to approved charitable organisations. It works like a delayed reward. You donate today and receive tax savings later during return filing. 

Here is a simple income and donation example based on official deduction rules to understand how Section 80G actually reduces your tax burden.
 

Your taxable income reduces to ₹5,90,000 as per the rules published by the Income Tax Department.

Who is eligible for the 80G Tax Exemption?

Eligibility under Section 80G is defined clearly by the Income Tax Department.
 

The 80G tax exemption for individuals applies only when donations are made to institutions approved under Section 80G and listed on the Income Tax portal. You should always verify approval status before donating.

Deduction Limits Under 80G 

Different donations attract different deduction limits as per official tax provisions.
 

It is important to know the 80G donation limit for salaried person to plan donations efficiently for salaried taxpayers. The iskcon donation 80G exemption limit depends on the approval status published on the Income Tax portal. These limits are strictly governed under Section 80G.

What are the Documents Required for the 80G Tax Exemption?

The Income Tax Department has made documentation compulsory for claiming 80G deductions.
 

As per official notifications, trusts must file Form 10BD and issue Form 10BE to donors. This improves transparency for the 80G tax exemption for individuals.

Bonus Tip: Donations without Form 10BE are not eligible for deduction from FY 2023-24 onwards, as notified by the Income Tax Department.

How to Claim 80G Deduction in ITR? 

A deduction under Section 80G follows a standard process on the Income Tax e-filing portal and must be completed while filing your income tax return.

1. Collect all donation receipts along with Form 10BE issued by the charitable trust.
2. Log in to the official Income Tax e-filing portal using your PAN and login credentials.
3. Open your income tax return form and move to Schedule 80G.
4. Enter the donation details carefully or verify the auto-filled information linked through Form 10BD.
5. Submit the return and complete e-verification to confirm your claim.

The system automatically performs an 80G tax exemption calculation using trust-filed data. Follow these steps to ensure you clearly understand how to claim 80G tax exemption and help avoid mismatch notices or disallowed deductions.

Conclusion 

Section 80G helps you reduce tax while supporting approved charitable causes. You can claim deductions smoothly by understanding eligibility, limits, documents, and the correct filing process. Plan donations wisely, keep records ready, and file accurately to maximise tax savings.

FAQs Related to 80G Tax Exemption 

1. How can I claim an 80G tax exemption for donations made to a social trust?

You can claim an 80G tax exemption only if the social trust is approved under Section 80G by the Income Tax Department. The donation must be made through non-cash modes, and you must keep a valid receipt and Form 10BE issued by the trust.

2. What is the process for claiming the 80G tax exemption on donations made to ISKCON Delhi?

You must ensure the donation receipt mentions the trust’s PAN and 80G approval details to claim a deduction for Iskcon Delhi donations. The deduction allowed depends on the iskcon donation 80G exemption limit notified by the Income Tax Department and must be reported in Schedule 80G while filing the return.

3. Can I claim the 80G exemption for supporting a social or charitable cause?

You can claim an 80G exemption only if the cause is supported through a registered and approved charitable institution. Donations made directly to individuals or unregistered groups do not qualify for a tax deduction under Section 80G.

4. Can I claim tax benefits on donations under Section 80G in the new tax regime?

No. Section 80G deductions are not available under the new tax regime. You must opt for the old tax regime to claim tax benefits on donations made under Section 80G.

5. Is there a minimum donation amount required to claim a deduction under Section 80G?

No minimum donation amount is prescribed under Section 80G. However, donations made in cash above ₹2,000 are not eligible for deduction, and proper documentation is mandatory to support the claim.