Taxpayers choosing the previous tax regime can proceed to say deductions on donations made to eligible charitable organisations beneath Section 80G of the Income Tax Act, 1961. To make clear how such claims can be assessed and verified, the Income Tax Department issued an intensive set of FAQs on December 19, 2025, outlining each substantive and procedural necessities, in keeping with an ET report. S. Sriram, Executive Partner at Lakshmikumaran and Sridharan Attorneys, advised ET that the FAQs transcend routine steering.“The FAQs highlight the broad legal principles and procedural regulations relating to claiming donations to eligible institutions as deduction in income tax returns. But read with the ‘NUDGE’ campaign and recent press release of the CBDT, the intended effect of the FAQ is much more than the clarifications given therein. The FAQ is a guidance note by the CBDT to taxpayers to test their claim for deduction for donations, against the principles explained in the FAQ,” he stated.
What Section 80G permits
Section 80G permits taxpayers to scale back their taxable revenue by claiming deductions on donations made to specified funds, trusts and establishments. The donation refers back to the precise quantity paid, whereas the deduction is the tax profit allowed on such cost, topic to situations laid down within the Act.
Verification of claims
The tax division has reiterated that verification can be based mostly on disclosures made by charitable organisations. Under Rule 18AB of the Income Tax Rules, 1962, sure classes of donees should file Form 10BD, containing donor particulars similar to PAN or Aadhaar, identify, deal with and quantity donated. For a deduction to be allowed, the quantity claimed within the taxpayer’s return should match the small print reported by the donee.Donors are additionally required to acquire a donation certificates in Form 10BE, wherever relevant.
Who can declare the deduction
Any taxpayer — people, HUFs, corporations, companies or different entities — having taxable revenue can declare deduction beneath Section 80G, offered the donation is made to an eligible entity and all compliance necessities are met.
Categories of deduction
The FAQs reiterate that donations beneath Section 80G fall into 4 distinct classes, relying on the proportion of deduction and whether or not an income-based cap applies:
- 100 per cent deduction with none qualifying restrict
- 50 per cent deduction with none qualifying restrict
- 100 per cent deduction topic to a qualifying restrict of 10 per cent of adjusted gross whole revenue
- 50 per cent deduction topic to the identical qualifying restrict
Eligible and non-eligible donations
Only donations made to funds or establishments particularly listed beneath Section 80G(2)(a) and people registered and authorised beneath Section 80G qualify for deduction. Taxpayers are suggested to confirm the approval standing and deduction class of the donee earlier than claiming the profit.The FAQs listing 24 classes of funds and establishments eligible for 100 per cent deduction with out restrict, whereas others — such because the Prime Minister’s Drought Relief Fund — qualify for 50 per cent deduction with out restrict.Certain donations, together with these for household planning, sports activities infrastructure, or contributions by corporations to specified sports activities our bodies, qualify for 100 per cent deduction topic to limits. Donations to notified charitable establishments, authorities our bodies for charitable functions (excluding household planning), housing and concrete growth authorities, specified companies, and notified locations of worship qualify for 50 per cent deduction with limits.
Key situations taxpayers should observe
The division has clarified that:
- Cash donations above Rs 2,000 are usually not eligible for deduction
- A donation claimed beneath Section 80G can’t be claimed once more beneath some other provision
- No deduction beneath Section 80G is accessible beneath the brand new tax regime beneath Section 115BAC
Taxpayers can confirm eligible establishments and trusts by the Income Tax Department’s official on-line database.
