Donation Receipt for 80G: Format, Rules, Limits, and How to Claim Tax Benefit

Section 80G of the Income Tax Act allows taxpayers to claim a deduction on donations made to specified funds, charitable institutions, and relief funds. The deduction reduces your taxable income, which means you pay less tax. For example, if your taxable income is ₹10 lakh and you donate ₹50,000 to a qualifying organization with 50% deduction, your taxable income reduces to ₹9,75,000.

Important: 80G deduction is available under both the old and new tax regimes (with some conditions under new regime). However, the donation must be made to an organization that has valid 80G registration from the Income Tax Department. Donations to individuals, political parties (separate Section 80GGC/80GGB), or unregistered organizations do not qualify.

The deduction is available to all taxpayers: individuals, HUFs, companies, and firms. There is no minimum donation amount to claim the deduction, but the organization must issue a proper donation receipt with specific mandatory fields.

80G deductions fall into four categories based on the percentage of deduction allowed and whether there is a qualifying limit: 1. 100% deduction without qualifying limit: • Prime Minister's National Relief Fund • National Defence Fund • National Foundation for Communal Harmony • Chief Minister's Relief Fund (of any state) • Africa Fund 2. 50% deduction without qualifying limit: • Jawaharlal Nehru Memorial Fund • Prime Minister's Drought Relief Fund • Indira Gandhi Memorial Trust

3. 100% deduction with qualifying limit: • Donations to government or local authority for promoting family planning • Government-approved institutions for scientific research or rural development 4. 50% deduction with qualifying limit: • Most charitable trusts, NGOs, Section 8 companies, temples, schools, hospitals registered under 80G • This is the most common category that most donors encounter

Qualifying limit: For categories with qualifying limit, the maximum deduction is restricted to 10% of the donor's adjusted gross total income (AGTI). AGTI = Gross Total Income minus long-term capital gains, short-term capital gains under Section 111A, and income under Sections 115A/115AB/115D. If you donate more than 10% of AGTI, the excess does not qualify for deduction.

For a donor to claim 80G deduction, the donation receipt must contain these mandatory fields: 1. Name and address of the organization/trust 2. Registration number under Section 80G (with validity period) 3. PAN of the organization 4. Serial number of the receipt (unique for each receipt) 5. Date of receipt of donation 6. Name and address of the donor 7. PAN of the donor (mandatory for donations above ₹50,000; recommended for all) 8. Amount of donation (in figures and words) 9. Mode of payment (cash, cheque, online transfer, UPI) 10. Whether the donation is in cash or kind (note: cash donations above ₹2,000 do not qualify for 80G)

Additional best practices: Include the organization's stamp/seal, authorized signatory name and signature, purpose of donation (general fund vs specific project), and a declaration that no goods or services were provided in exchange for the donation (which affects deductibility).

Our free donation receipt generator includes all mandatory 80G fields. Enter your organization's details and the donor's information, and download a professional PDF receipt that meets compliance requirements.

Step 1: Collect donation receipts from all organizations you've donated to during the financial year. Verify that each receipt has the organization's 80G registration number and PAN.

Step 2: In your ITR form, go to the section for 'Deductions under Chapter VI-A' → '80G'. You'll need to fill in: organization name, PAN, address, 80G registration number, donation amount, and whether it falls under 100% or 50% deduction category.

Step 3: The ITR form auto-calculates the deduction based on the category and qualifying limit. Verify the amount matches your expectation. Remember: qualifying limit = 10% of adjusted gross total income.

Step 4: Retain all donation receipts for at least 6 years from the end of the relevant assessment year. The Income Tax Department can ask for proof during scrutiny or assessment proceedings.

Pro tip: From FY 2021-22, organizations with 80G registration are required to file Form 10BD (statement of donations) with the IT Department. Donors can verify their donation details on the Annual Information Statement (AIS) on the IT portal. Cross-check your AIS with your receipts before filing.

1. Cash donations above ₹2,000: No deduction is allowed for cash donations exceeding ₹2,000 per transaction. Always pay by cheque, bank transfer, or UPI for larger amounts.

2. Donating to unregistered organizations: Verify the 80G registration status on the Income Tax Department's website before donating. Registrations expire and need renewal.

3. Not obtaining proper receipt: A simple 'thank you' note is not sufficient. The receipt must contain all mandatory fields including 80G registration number and PAN.

4. Exceeding qualifying limit: Many donors assume they can deduct the full donation amount. For most charitable trusts (50% with qualifying limit), only 50% of the donation, subject to 10% of AGTI, is deductible. This is a double limit.

5. Confusing 80G with 80GGA: Section 80G is for donations to charitable/religious organizations. Section 80GGA is for donations to scientific research or rural development. Different rules apply. Similarly, 80GGC/80GGB applies to political party donations.

6. Donations in kind: Donations of goods, property, or services (in kind) generally do not qualify for 80G deduction. Only monetary donations are eligible. If you donate computers to a school, you cannot claim 80G on the market value.

Anita has a gross total income of ₹12,00,000. She made the following donations during FY 2025-26: 1. PM National Relief Fund: ₹10,000 (100% without limit) 2. Local temple trust (80G registered, 50% with limit): ₹40,000 3. School building fund (80G registered, 50% with limit): ₹30,000

Calculation: • Donation 1: Full ₹10,000 deductible (100%, no limit) • Donations 2 + 3: Total = ₹70,000 at 50% = ₹35,000 eligible deduction • But qualifying limit = 10% of AGTI = 10% of ₹12,00,000 = ₹1,20,000 • Since ₹70,000 < ₹1,20,000, no cap applies • Deduction for donations 2+3 = ₹35,000 Total 80G deduction: ₹10,000 + ₹35,000 = ₹45,000 Anita's taxable income reduces from ₹12,00,000 to ₹11,55,000 At 30% tax bracket, this saves approximately ₹13,500 + cess in tax.

Key takeaway: Plan your donations to maximize the 10% qualifying limit. If Anita's AGTI was ₹5,00,000, the qualifying limit would be ₹50,000, and her 50%-category donations of ₹70,000 would be capped at ₹50,000 (deduction = ₹25,000 only).