Section 80G Donation Deduction Calculator

Look at the receipt issued by the institution. A valid 80G receipt must mention the donee's name, PAN, address, registration number under Section 80G, and the period of validity. Since April 2021, the donee also has to issue Form 10BE - a certificate filed with the income tax department - and provide it to you. Without Form 10BE, the deduction will not flow into your AIS or be allowed. Cash donations above Rs 2,000 are anyway disallowed. So before you write a cheque, verify on the income tax e-filing portal whether the entity is currently registered.

80G is split into four buckets. Some donations get 100% deduction without a qualifying limit - PM National Relief Fund, PM CARES Fund, National Defence Fund. Some get 100% with a qualifying limit of 10% of adjusted gross total income, like donations to Indira Gandhi Memorial Trust. Most charitable trusts give you 50% deduction with the 10% qualifying limit. A few rare ones give 50% without limit. So a Rs 1 lakh donation to PM CARES gives Rs 1 lakh deduction, but the same amount to a 50%-with-limit NGO may give only Rs 50,000 or even less.

Many 80G donations are restricted to 10% of your adjusted gross total income (AGTI). AGTI is gross total income minus long-term capital gains, certain short-term gains under Section 111A, and other Chapter VI-A deductions excluding 80G itself. Suppose your AGTI is Rs 8 lakh. The qualifying ceiling for limited-bucket donations is Rs 80,000. If you donated Rs 1.5 lakh to a 50%-with-limit charity, the eligible donation is restricted to Rs 80,000, and the deduction is 50% of that, i.e., Rs 40,000. Donations in the no-limit category are computed first and excluded from this calculation.

Yes, UPI is treated as a non-cash mode. Any cheque, NEFT, RTGS, IMPS, UPI, debit card or credit card donation is fully eligible under 80G, with no rupee restriction on mode. Cash donations are capped at Rs 2,000 - anything more in cash is fully disallowed. Get the receipt against your PAN - many digital donation platforms now issue 80G receipts and Form 10BE automatically by email. Keep both. The UPI transaction reference along with the donee's receipt is normally enough proof during processing of the return.

ITR-1 and ITR-2 now have a dedicated 80G schedule asking for donee name, address, PAN of donee, donation amount in cash, in other modes, eligible amount, and qualifying limit category. From AY 2023-24 onwards, the unique reference number from Form 10BE issued by the donee is also captured. So have the receipt and Form 10BE in hand before you fill the schedule. The donee's PAN must match what they reported in their statement, otherwise the system will throw a mismatch and the deduction will be restricted in 143(1) intimation.

No. Only NGOs that hold a valid 80G registration with the income tax department give you the deduction. Many small or local NGOs do excellent work but do not bother to take 80G registration, in which case your donation is purely charitable - not tax-deductible. Always check the donee's 80G certificate validity. Since 2021, registrations are time-bound and have to be renewed every 5 years. The CBDT publishes a list of approved entities, and the e-filing portal has a search facility. A general assumption that any NGO is 80G eligible gets clients into trouble.

Practically, no. From AY 2022-23, the law requires that the donee file Form 10BD with the department and issue Form 10BE certificate to you. If 10BE is missing, the donation will not appear in your AIS, and the assessing officer can disallow the deduction even if you have a paper receipt. Approach the donee NGO and request the certificate - they are obliged to issue it once you provide PAN. If the NGO has lost its 80G registration, they cannot issue 10BE at all, in which case the deduction is gone.