Section 80G — Donations deduction list of approved institutions FY 2026-27

INTRODUCTION

Donating to charitable institutions not only supports meaningful social causes but can also help taxpayers reduce their tax liability under Section 80G of the Income-tax Act, 1961. However, not every donation qualifies for a tax deduction. The deduction is available only when donations are made to eligible funds or institutions approved under the Income-tax Act and all prescribed conditions are fulfilled.

Many taxpayers either donate to institutions that are not registered under Section 80G or claim deductions incorrectly while filing their Income Tax Return (ITR). Understanding the eligibility criteria, deduction categories, approved institutions, and documentation requirements can help you claim the correct tax benefit while remaining fully compliant.

WHAT IS SECTION 80G?

Section 80G allows taxpayers to claim deductions for donations made to specified charitable funds, institutions, trusts, and government relief funds.

The amount of deduction depends on the category of the institution receiving the donation. Some donations qualify for a full deduction, while others qualify for only a partial deduction. Certain deductions are also subject to qualifying limits based on the taxpayer’s Adjusted Gross Total Income.

Before claiming any deduction, taxpayers should verify whether the institution holds a valid registration under Section 80G.

APPROVED INSTITUTIONS UNDER SECTION 80G

The Income-tax Act specifies various funds and institutions that are eligible for deduction under Section 80G.

Some commonly known approved institutions include:

🇮🇳 Prime Minister’s National Relief Fund (PMNRF)

National Defence Fund

National Foundation for Communal Harmony

Clean Ganga Fund

National Children’s Fund

Government-approved hospitals and charitable institutions

Approved educational, medical and welfare trusts

Charitable institutions registered under Section 80G

Before making any donation, taxpayers should always verify the institution’s valid 80G Registration Number and approval status.

HOW MUCH DEDUCTION CAN YOU CLAIM?

The deduction available under Section 80G is not the same for every donation.

Depending on the institution, the deduction may be available as:

• 100% deduction without qualifying limit.
• 50% deduction without qualifying limit.
• 100% deduction subject to the qualifying limit.
• 50% deduction subject to the qualifying limit.

Since different institutions fall under different categories, taxpayers should carefully verify the applicable deduction before claiming it in their Income Tax Return.

MODE OF PAYMENT

The method of making the donation is equally important.

Donations made through banking channels such as cheque, NEFT, RTGS, UPI, debit card, credit card or other digital payment methods generally qualify for deduction.

However:

• Cash donations exceeding ₹2,000 are not eligible for deduction under Section 80G.

Maintaining a proper banking trail also makes it easier to substantiate the claim during assessment or verification.

DOCUMENTS REQUIRED

Before claiming deduction under Section 80G, taxpayers should maintain proper supporting documents.

These generally include:

• Donation Receipt issued by the institution.

🆔 PAN of the Donee Institution.

• Valid 80G Registration Number.
• Proof of Payment.
• Form 10BE, wherever applicable.

These documents help establish the genuineness of the donation and may be required during verification by the Income Tax Department.

COMMON MISTAKES TO AVOID

Many taxpayers lose the deduction because of avoidable errors while filing their Income Tax Return.

Some common mistakes include:

• Claiming deduction for donations made to institutions without valid 80G approval.
• Claiming 100% deduction where only 50% is allowable.
• Making cash donations exceeding ₹2,000.
• Not maintaining donation receipts or payment proof.
• Entering incorrect PAN or registration details of the charitable institution.

Avoiding these mistakes can help ensure that your deduction is allowed without unnecessary notices or queries.

TIPS BEFORE CLAIMING DEDUCTION

Before filing your Income Tax Return, it is advisable to perform a few simple checks.

• Verify the institution’s Section 80G approval.
• Collect the donation receipt and Form 10BE, wherever applicable.
• Prefer banking or digital modes of payment.
• Check the applicable deduction category before filing the return.
• ‍💼 Seek professional advice where large donations or multiple charitable contributions are involved.

A little verification before filing your return can help maximise your tax benefit while ensuring complete compliance.

CONCLUSION

Section 80G encourages taxpayers to contribute towards charitable and social causes while rewarding them with tax deductions on eligible donations. However, the deduction is available only when donations are made to approved institutions and the prescribed conditions under the Income-tax Act are fulfilled.

Before claiming the deduction for FY 2026-27, verify the institution’s approval status, maintain proper documentation, and ensure that the correct deduction category is selected while filing your Income Tax Return. Proper compliance helps maximise tax savings while supporting genuine charitable initiatives.

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