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Best ways to save tax through donations (Section 80G)

Giving to charity can also reduce your tax, but only if you donate to the right institutions and keep the right paperwork. Here's how to save tax through donations under Section 80G.

Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13

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  1. 1. Donate to eligible institutions
  2. 2. Avoid large cash donations
  3. 3. Keep the receipt and donee details
  4. 4. Know it's an old-regime benefit
  5. 5. Don't confuse 80G with CSR or business donations
  6. Common questions

Quick answer

Donations to eligible funds and institutions are deductible under 80G — at 50% or 100%, with conditions. Here's how to give and claim correctly.

1. Donate to eligible institutions

Only donations to funds and institutions approved under Section 80G qualify. The deduction is allowed at either 50% or 100% of the donation depending on the institution, and some are subject to a qualifying limit linked to your income. Check the donee's 80G status before assuming a deduction.

2. Avoid large cash donations

Cash donations above Rs 2,000 don't qualify for the deduction, so give larger amounts by cheque, bank transfer or digital payment. This single rule trips up many well-meaning donors who give cash and lose the benefit.

3. Keep the receipt and donee details

To claim, you need a stamped receipt with the institution's name, PAN and 80G registration details, and the donation is reported with the donee's details in your return. Keep these safely — the deduction can be denied without them.

4. Know it's an old-regime benefit

The 80G donation deduction is generally available in the old regime, so factor it in when comparing regimes. If you give meaningfully each year, it adds to the case for the old regime.

5. Don't confuse 80G with CSR or business donations

Personal donations under 80G are separate from a company's CSR spending or business-related contributions, which have their own treatment. Claim personal giving under 80G on your own return, and keep business contributions in the business books.

Common questions

1How much tax deduction do I get for donations?

Either 50% or 100% of the donation, depending on the institution , under Section 80G — and some donations are subject to a qualifying limit linked to your income. Check the donee's 80G status first.

2Can I claim a tax deduction for cash donations?

Only up to Rs 2,000 in cash — donations above that must be by cheque, transfer or digital payment to qualify under 80G. Large cash gifts lose the deduction.

3What documents do I need to claim 80G?

A stamped receipt showing the institution's name, PAN and 80G registration , and the donee's details are reported in your return. Without them, the deduction can be denied.

Give to charity each year? Write to the firm and we'll make sure your 80G donations are claimed correctly.