Taxpayers opting for the old tax regime can continue to claim deductions on donations made to eligible charitable organisations under
Section 80G of the Income Tax Act, 1961. To clarify how such claims will be assessed and verified, the Income Tax Department issued an extensive set of FAQs on December 19, 2025.
outlining both substantive and procedural requirements, according to an ET report. S. Sriram, Executive Partner at Lakshmikumaran and Sridharan Attorneys,
told ET that the FAQs go beyond routine guidance. “
The FAQs highlight the broad legal principles and procedural regulations relating to claiming donations to eligible institutions as deductions in income tax returns.
However, when considered alongside the ‘NUDGE’ campaign and the recent press release from the CBDT, the intended effect of the FAQ extends beyond the clarifications provided within it.
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 said.
What Section 80G allows
Section 80G enables taxpayers to reduce their taxable income by claiming deductions for donations made to specified funds, trusts, and institutions.
The donation refers to the actual amount paid, while the deduction is the tax benefit allowed on such payment, subject to conditions laid down in the Act.
Verification of claims
The tax department has reiterated that verification will be based on disclosures made by charitable organisations.
Under Rule 18AB of the Income Tax Rules, 1962, certain categories of donees must file Form 10BD, containing donor details such as PAN or Aadhaar, name, address and amount donated.
For a deduction to be allowed, the amount claimed in the taxpayer’s return must match the details reported by the donee. Donors are also required to obtain a donation certificate in Form 10BE, wherever applicable.
Who can claim the deduction
Any taxpayer—individuals, HUFs, companies, firms, or other entities—with taxable income can claim a deduction under Section 80G, provided the donation is made to an eligible entity and all compliance requirements are met.
Categories of deduction
The FAQs reiterate that donations under Section 80G fall into four distinct categories, depending on the percentage of deduction and whether an income-based cap applies:
- 100 per cent deduction without any qualifying limit
- 50 per cent deduction without any qualifying limit.
- 100% deduction, subject to a qualifying limit of 10 percent of adjusted gross total income.
- A 50 percent deduction is subject to the same qualifying limit.
Eligible and non-eligible donations
Only donations made to funds or institutions specifically listed under Section 80G(2)(a) and those registered and approved under Section 80G qualify for deduction.
Taxpayers are advised to verify the approval status and deduction category of the doer before claiming the benefit.
The FAQs list 24 categories of funds and institutions eligible for 100 per cent deduction without limit, while others—such as the Prime Minister’s Drought Relief Fund—qualify for 50 per cent deduction without limit.
Certain donations, including those for family planning, sports infrastructure, or contributions by companies to specified sports bodies,
qualify for a 100% deduction, subject to limits. Donations to notified charitable institutions, government bodies for charitable purposes (excluding family planning),
Housing and urban development authorities, specified corporations, and notified places of worship qualify for a 50 per cent deduction with limits.
Key conditions taxpayers must note
The department has clarified that:
- Cash donations above Rs 2,000 are not eligible for deduction
- A donation claimed under Section 80G cannot be claimed again under any other provision
- No deduction under Section 80G is available under the new tax regime under Section 115BAC
Taxpayers can verify eligible institutions and trusts through the Income Tax Department’s official online database.
