Section 80G has quietly become a reporting-driven deduction. The institution you donated to must file a statement of donations received and issue you a certificate; your claim is matched against that filing. A receipt on letterhead, which used to be sufficient, no longer is.
The structure
- Some funds qualify for 100% deduction, some for 50%.
- Some are subject to a qualifying ceiling — broadly 10% of adjusted gross total income — and some are not.
- That gives four combinations, and the fund’s own approval determines which one applies. It is not a choice you make.
Cash donations above ₹2,000 get no deduction at all. Anything meaningful should move by bank transfer or card. This is the most common reason an otherwise valid claim fails.
Form 10BE is now the proof
The recipient institution files a statement of donations and issues Form 10BE to each donor. Your deduction is matched against that filing, and the donation will also appear in your AIS.
Two practical consequences. First, donate to institutions that are properly registered and actually file — a small trust that never files leaves you with a receipt and no deduction. Second, collect the 10BE rather than assuming it will arrive; many institutions issue it only on request.
The regime question comes first
Under the new tax regime, 80G is not available — like most Chapter VI-A deductions. If you are on the new regime, a donation is not a tax planning decision at all, and should be made purely on its merits.
For a company, donations may instead sit in the CSR framework, which has its own rules and does not automatically produce an 80G deduction. Check which one you are in before budgeting the tax effect. Our old versus new regime comparison covers the individual side.
Where we come in
We check the regime, the certificate and the ceiling before a donation is claimed, so the deduction is not lost on a technicality. See ITR filing.
This article is general information, not professional advice. Limits, rates and dates change by notification — confirm the position for your own year before acting on it.