Filing your income tax return (ITR) for the financial year 2024-25 (Assessment Year 2025-26) is a critical task, and understanding available deductions is key to managing your tax liability. For those opting for the old tax regime, Section 80G provides a valuable opportunity to save on taxes by supporting charitable causes.
The government introduced Section 80G to encourage philanthropy, allowing taxpayers to deduct a portion of their donations to registered organizations from their taxable income. This directly reduces your tax burden.
Here’s what you need to know to claim these deductions:
Claiming Your Deduction
To claim a deduction under Section 80G, you must adhere to a few important rules:
- Opt for the Old Tax Regime: The new income tax regime generally does not allow for these deductions, so you must choose to file under the old regime.
- Proof of Donation: A valid receipt is essential. This receipt must include the following details:
- Name and address of the donee organization.
- The organization’s Permanent Account Number (PAN).
- The organization’s Section 80G registration number and its validity period.
- The amount of the donation.
- Your name and address as the donor.
- Form 10BE: In addition to the receipt, you must obtain Form 10BE from the recipient organization. This form serves as official proof of the donation and must be uploaded during the ITR filing process.
- Mode of Donation: Donations made via cheque, demand draft, or digital payment methods are eligible. Cash donations are only eligible if the amount is ₹2,000 or less. Donations “in-kind” (e.g., clothes, food, or other goods) do not qualify for a deduction.
Understanding Deduction Limits
The amount you can deduct depends on the recipient organization. Donations are categorized as follows:
- 100% Deduction Without Any Limit: You can deduct the entire donated amount. This applies to contributions to prominent government funds such as:
- Prime Minister’s National Relief Fund
- National Defence Fund
- Swachh Bharat Kosh
- National Foundation for Communal Harmony
- 50% Deduction Without Any Limit: You can deduct 50% of your donation amount. This category includes funds like:
- Prime Minister’s Drought Relief Fund
- Jawaharlal Nehru Memorial Fund
- Indira Gandhi Memorial Trust
- 100% or 50% Deduction Subject to a Qualifying Limit: For certain other charitable institutions, the deduction is capped at 10% of your “adjusted gross total income.” Donations exceeding this limit are not eligible for a deduction. The deduction amount (100% or 50%) will depend on the specific institution.
Important Note: The due date for filing ITR for non-audit taxpayers for FY 2024-25 (AY 2025-26) has been extended from July 31, 2025, to September 15, 2025. It’s crucial to file your return by the deadline to avoid penalties and ensure you can claim your deductions.