Section 80G & 80GGA Deductions – Donations Eligible Under Section 80G and 80GGA

Under the Income Tax Act, Section 80G provides tax deductions for donations made to eligible funds, trusts, and charitable institutions. Taxpayers can claim either 50% or 100% of the donated amount, depending on the nature of the recipient organization. Section 80GGA, on the other hand, extends similar benefits for contributions towards scientific research and rural development. These sections encourage social welfare and research advancement while helping taxpayers reduce their taxable income under the old regime.

What is Section 80G?

Section 80G of the Income Tax Act, 1961 enables taxpayers to claim deductions for donations made to specified charitable institutions, funds, and relief organizations.
The following categories of taxpayers are eligible to claim this deduction:

Individuals
Companies
Firms
Hindu Undivided Families (HUFs)
Non-Resident Indians (NRIs)
Any other person

Depending on the nature of the donee, deductions can be claimed for either 100% or 50% of the donated amount, subject to prescribed limits. Donations made to certain notified funds qualify for full deduction without any upper limit, significantly reducing overall tax liability.

Donors must ensure they collect valid receipts that include the name, PAN, and 80G registration number of the organization to validate the claim. Section 80G not only encourages philanthropy but also ensures transparency and accountability in charitable contributions.
Deductions under this section are available only under the old tax regime.

Mode of Payment Under Section 80G

Taxpayers can claim deductions under Section 80G for donations made through the following payment methods:

Cheque
Demand Draft
Cash (only for donations up to ₹2,000)

Note:
Donations made in kind—such as food, clothing, medicines, or other materials—are not eligible for deduction under Section 80G. Similarly, cash donations exceeding ₹2,000 do not qualify. Contributions above this limit must be made through non-cash modes to be eligible for deduction.

Under Section 80G, specific donations qualify for a 100% or 50% deduction, with or without restrictions, as defined in the Act.

Donations Eligible for 100% Deduction Without Limit

National Defence Fund established by the Central Government
Prime Minister’s National Relief Fund and PM CARES Fund
National Foundation for Communal Harmony
Approved university or educational institution of national importance
Zila Saksharta Samiti under the District Collector’s chairmanship
State Government fund for medical relief to the poor
National Illness Assistance Fund
National or State Blood Transfusion Council
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
National Sports Fund
National Cultural Fund
Fund for Technology Development and Application
National Children’s Fund
Chief Minister’s or Lieutenant Governor’s Relief Fund (for any State or Union Territory)
Army Central Welfare Fund, Indian Naval Benevolent Fund, or Air Force Central Welfare Fund
Andhra Pradesh Chief Minister’s Cyclone Relief Fund (1996)
Maharashtra Chief Minister’s Relief Fund (Oct 1–6, 1993)
Chief Minister’s Earthquake Relief Fund, Maharashtra
Gujarat State Government Fund for earthquake relief
Any trust, institution, or fund covered under Section 80G(5C) for Gujarat earthquake victims (Jan 26–Sep 30, 2001)
Prime Minister’s Armenia Earthquake Relief Fund
Africa (Public Contributions – India) Fund
Swachh Bharat Kosh (from FY 2014–15)
Clean Ganga Fund (from FY 2014–15)
National Fund for Control of Drug Abuse (from FY 2015–16)

Donations Eligible for 50% Deduction Without Limit

Prime Minister’s Drought Relief Fund

Donations Eligible for 100% Deduction (Subject to 10% of Adjusted Gross Total Income)

Donations made to the Government or any approved local authority, institution, or association for the purpose of promoting family planning.
Donations by a company to the Indian Olympic Association or any other notified institution or association in India for the development of sports infrastructure or for sponsoring sports and games within the country.

Donations Eligible for 50% Deduction (Subject to 10% of Adjusted Gross Total Income)

Donations made to any other fund or institution that meets the conditions laid down under Section 80G(5).
Contributions to the Government or any local authority for charitable purposes other than family planning.
Donations to authorities established in India for purposes such as housing, urban development, or improvement of cities, towns, or villages.
Contributions made to any corporation referred to in Section 10(26BB) for promoting the welfare and interests of minority communities.
Donations made towards the repair or renovation of any notified temple, mosque, gurudwara, church, or other recognized place of worship.

What is Adjusted Total Income?

Adjusted Gross Total Income refers to the gross total income (the total of income under all heads) after reducing the following amounts:

Deductions under Sections 80C to 80U (excluding Section 80G)
Exempt income
Long-term capital gains
Short-term capital gains under Section 111A
Income referred to in Sections 115A, 115AB, 115AC, 115AD, and 115D

How to Calculate Deduction under Section 80G

Step 1: Compute your total income before claiming any deductions under Chapter VI-A (including Section 80G).

Step 2: Determine your Adjusted Total Income (ATI):
From your Gross Total Income, subtract all deductions except 80G, and exclude:

Long-term capital gains
Short-term capital gains under Section 111A
Income under Sections 115A, 115AB, 115AC, and 115AD
All Chapter VI-A deductions except Section 80G

The result is your Adjusted Total Income.

Step 3: Calculate 10% of the Adjusted Total Income — this is the Qualifying Limit applicable to donations subject to a limit.

Step 4: Classify donations into the following categories:
(a) 100% deduction without limit
(b) 50% deduction without limit
(c) 100% deduction subject to qualifying limit
(d) 50% deduction subject to qualifying limit

Step 5: Allow full deduction for donations in categories (a) and (b).

Step 6: Apply the Qualifying Limit to remaining donations:

Donations eligible under the qualifying limit = lower of actual donation or 10% of ATI
Set off 100% qualifying-limit donations first
Any remaining balance is considered for 50% qualifying-limit deduction
Deduction for 50% donations = 50% of remaining eligible donation

Step 7: Calculate the total deduction under Section 80G by adding:

Full deductions (Step 5)
Deductions under the qualifying limit (Step 6)

Example: How Section 80G Deduction Benefits Different Taxpayers

Particulars	Mr. S (Individual)	M/s. P Pvt. Ltd. (Company)
Income for FY 2024–25	₹7,00,000	₹7,00,000
A. Donation made to NGO	₹1,60,000	₹1,60,000
Adjusted Total Income	₹7,00,000	₹7,00,000
B. Qualifying limit (10% of ATI)	₹70,000	₹70,000
Maximum permissible deduction (lower of A or B)	₹70,000	₹70,000
C. 50% of maximum permissible amount	₹35,000	₹35,000
D. 50% of donation	₹80,000	₹80,000
Deduction available under Section 80G (lower of C or D)	₹35,000	₹35,000
Taxable income after deduction	₹6,65,000	₹6,65,000
A. Tax payable after donation	₹47,320	₹2,07,480
(Individual: slab rate)	(Company: 30%)
B. Tax payable before donation	₹54,600	₹2,18,400
C. Tax Benefit from Section 80G	₹7,280	₹10,920

Note: The above calculation is based on the old tax regime, as deductions under Section 80G are not available under the new regime.

Details and Documents Required to Claim Section 80G Deduction

To claim the deduction, the following information must be provided in your income tax return:

Name, address, and PAN of the donee
Amount donated (with a breakup of cash and other modes)
Amount eligible for deduction

Mandatory documents:

Stamped donation receipt: Must include donor’s name, address, donated amount, and the trust’s PAN.
Registration number of the trust: The Income Tax Department issues registration numbers to approved charitable institutions. Donors must ensure the receipt mentions this registration number.

Section 80G vs Section 80GGA

Section 80G of the Income Tax Act allows taxpayers to claim deductions for donations made to specified relief funds and charitable institutions. The section encourages charitable giving by reducing the donor’s tax burden. Depending on the organization receiving the donation, taxpayers can claim either 100% or 50% deduction of the donated amount. Generally, contributions to government relief funds qualify for 100% deduction without any upper limit.

On the other hand, Section 80GGA provides deductions for donations made to approved institutions engaged in scientific research or rural development, subject to specific conditions. There is no maximum limit for claiming deductions under this section as well.

For both Section 80G and Section 80GGA, the donations must be made through permitted electronic modes such as cheque, demand draft, or online transfer. However, cash donations up to ₹2,000 are also allowed as deductions.

Section 80GGA – Key Highlights

Deductions under Section 80GGA are available for contributions made towards scientific research or rural development projects.
The deduction is available to all taxpayers except those earning income (or incurring a loss) from business or profession.
100% of the donated amount qualifies for deduction under this section.
Donations exceeding ₹2,000 in cash are not eligible for deduction.
This benefit cannot be claimed by taxpayers who have opted for the new tax regime under Section 115BAC.

Modes of Payment Allowed:

Cheque
Demand Draft
Cash (only up to ₹2,000)

List of Donations Eligible Under Section 80GGA

The following types of donations qualify for deduction under Section 80GGA of the Income Tax Act:

Any amount paid to a research association engaged in scientific research, or to a college, university, or other institution approved under Section 35(1)(ii) for the purpose of conducting scientific research.
Any sum contributed to a research association conducting social science or statistical research, or to an approved college, university, or institution engaged in such research, as per approval under Section 35(1)(iii).
Donations made to an approved association or institution involved in rural development programmes, approved under Section 35CCA.
Contributions to an approved association or institution that provides training to individuals for the implementation of rural development projects.
Any amount donated to a public sector company, local authority, or approved association/institution for carrying out projects or schemes sanctioned under Section 35AC.
Contributions made to a notified Rural Development Fund.
Donations to a notified Fund for Afforestation.
Contributions made to a notified National Poverty Eradication Fund.

Note:
If a deduction is claimed under Section 80GGA, the same expense cannot be claimed again under any other provision of the Income Tax Act.

Frequently Asked Questions (FAQs) on Section 80G, 80GGA & 80GG

1. Can a partnership firm claim a deduction under Section 80G?
Yes. Deductions under Section 80G can be claimed by individuals, partnership firms, companies, and other taxpayers who make eligible donations to approved funds or charitable institutions.

2. What is Section 80GG in income tax?
Section 80GG allows a deduction for rent paid by individuals whose salary does not include House Rent Allowance (HRA) or by self-employed persons. However, to claim this benefit, the taxpayer, their spouse, or minor children must not own any residential property in the place where they reside or work.

3. Can I claim both 80GG and HRA?
No. You cannot claim both deductions simultaneously. Section 80GG applies only if you are not receiving HRA and do not own a house at your place of employment.

4. I am a non-resident and made donations to the Prime Minister’s Relief Fund. Can I claim a deduction under Section 80G?
Yes. Both residents and non-residents (NRIs) are eligible to claim deduction under Section 80G, provided the donation is made to a recognized fund or institution in India.

5. Can donations in kind qualify for deduction under Section 80G?
No. In-kind donations such as food, clothes, medicines, or materials are not eligible for deduction under Section 80G. Only monetary contributions through cheque, draft, or electronic transfer (and cash up to ₹2,000) qualify.

6. What documents are required for claiming deduction under Section 80GGA?
To claim a deduction under Section 80GGA, you must possess:

A stamped receipt from the donee institution showing the donor’s name, PAN, and amount donated.
The registration number of the trust or institution as issued by the Income Tax Department.
Proof of payment (such as a cheque, demand draft, or online transfer).

7. Who can claim a deduction under Section 80GG?
Any individual taxpayer who pays rent for residential accommodation but does not receive HRA can claim a deduction under Section 80GG. This includes self-employed persons and employees working in sectors where HRA is not part of the salary package.

8. Can I claim deductions under Section 80G or 80GGA if I opt for the new tax regime?
No. Deductions under Sections 80G and 80GGA are not available to taxpayers who choose the new tax regime (Section 115BAC). These benefits can only be availed under the old tax regime.

9. What is the maximum cash donation limit under Section 80G and 80GGA?
Cash donations exceeding ₹2,000 are not eligible for deductions under either Section 80G or Section 80GGA. Donations above this limit must be made through banking or digital modes.

10. Are donations eligible for 100% deduction under Section 80GGA?
Yes. All donations made to approved institutions under Section 80GGA for scientific research or rural development qualify for a 100% deduction, subject to prescribed conditions.

11. Can a company claim deduction under Section 80GGA?
No. Section 80GGA is not applicable to taxpayers who have income (or loss) from a business or profession. Hence, companies and business entities cannot claim this deduction.

12. Is donation proof mandatory for claiming 80G deduction?
Yes. You must have a valid receipt from the registered fund or trust containing details like the donee’s name, PAN, registration number, and donation amount to claim deduction under Section 80G.