Section 80G + 80GGA + 80GGC Donations India FY 2026-27: 50% vs 100% Deduction, PM CARES, Political Party
In short: Section 80G covers donations to approved charities with 50% or 100% deduction depending on donee category. Some have a 10% AGTI cap, others have no cap. Section 80GGA covers donations to scientific research and rural development (100%). Section 80GGC covers political party donations (100%, no cap). Cash donation limit is Rs 2,000 under 80G; above that must be paid by cheque, UPI, or bank transfer. Available only under the old tax regime.
Section 80G Four Categories
100 percent deduction, no cap
Includes PM National Relief Fund (PMNRF), PM CARES Fund, National Defence Fund, Swachh Bharat Kosh, Clean Ganga Fund, National Sports Fund, National Cultural Fund.
50 percent deduction, no cap
Includes PM Drought Relief Fund, Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust.
100 percent deduction with 10 percent AGTI cap
State Government for promoting family planning, notified funds for Olympic sports.
50 percent deduction with 10 percent AGTI cap
Most approved charitable institutions like NGOs, religious trusts, educational and medical institutions. AGTI is adjusted gross total income (total income minus exemptions and other Chapter VI-A deductions excluding 80G).
Worked Example
Suppose you have GTI of Rs 12 lakh and donate Rs 50,000 to a 50 percent category NGO with 10 percent AGTI cap. AGTI is Rs 12,00,000. 10 percent of AGTI is Rs 1,20,000. Donation of Rs 50,000 is below cap. 50 percent deduction equals Rs 25,000. Tax saved at 30 percent slab is Rs 7,800 including cess. If the same donation went to PM CARES (100 percent, no cap), full Rs 50,000 is deducted, saving Rs 15,600. Same donation, 2x benefit by choosing the right fund category.
The Rs 2,000 Cash Rule
For 80G donations made in cash, the maximum claimable is Rs 2,000 per donee. Any cash above this is not deductible regardless of receipt. To claim above Rs 2,000, payment must be via cheque, DD, UPI, NEFT/IMPS/RTGS, or credit or debit card. Cash dropped in temple or religious donation boxes above Rs 2,000 is non-deductible.
Required Documentation
You need a receipt from the donee with: name and address of donee organisation, PAN of donee, 80G registration number and date of issue, donor name, amount donated, date, mode of payment, and signature from authorised signatory. Bank statement alone is not sufficient. Without the receipt the deduction is denied.
Section 80GGA – Scientific Research and Rural Development
Allows 100 percent deduction on donations to approved scientific research institutions, universities for research, rural development institutions approved by Central Government, and notified funds for conservation. Only individuals and HUFs without business income can claim. Salary earners qualify. Cash limit is Rs 10,000.
Section 80GGC – Political Party Donations
Allows 100 percent deduction on donations to registered political parties and notified electoral trusts. Cash donations are not deductible at all. Must be paid by cheque, bank transfer, or electoral bond. No cap on deduction amount.
Old Regime Only
All three sections (80G, 80GGA, 80GGC) are available only under the old tax regime. New regime disallows all three.
How to Claim in ITR
Maintain all 80G receipts. In ITR-1 or ITR-2, navigate to Schedule 80G. Enter donee details: name, PAN, address, donation amount, category (50 or 100 percent, cap or no cap). System computes eligible deduction automatically. List each donee separately.
Common Mistakes
Donating cash above Rs 2,000: IT Department disallows in scrutiny. Donating to unregistered NGOs: verify 80G registration before donating large amounts. Forgetting receipts: crowdfunding platforms forward to NGOs; get the NGO receipt. Mixing 80GGC with 80G: political donations have a separate ITR schedule.
Sources
- Income Tax Act Section 80G
- Section 80GGA
- Section 80GGC
- CBDT notified funds list
