TaxSaral
Section 133Charitable Trusts & NPOswas Section 80G in IT Act 1961

Deduction for Donations to Charitable Institutions (80G)

Donors can claim deductions of 50% or 100% of amounts donated to approved funds and charitable institutions under Section 133. Certain institutions qualify for 100% deduction without any cap, while donations to most others allow only 50% deduction, capped at 10% of adjusted Gross Total Income.

Who this applies to

All taxpayers — individuals, HUFs, firms and companies — who donate to funds, trusts, or charitable institutions approved under Section 354 of the IT Act 2025.

Key Points

  • 100% deduction, no qualifying limit: PM National Relief Fund, PM CARES, National Defence Fund, National Children's Fund
  • 50% deduction, no qualifying limit: Jawaharlal Nehru Memorial Fund, Prime Minister's Drought Relief Fund
  • 100% deduction with qualifying limit (10% of adjusted GTI): government-approved research associations and institutions
  • 50% deduction with qualifying limit (10% of adjusted GTI): most registered charitable trusts and institutions
  • Cash donations above ₹2,000 are NOT eligible — must be by cheque, draft, or electronic transfer
  • Obtain a stamped 80G receipt showing the institution's PAN and valid registration number

Worked Example

1

Individual Claiming Multiple 80G Deductions

Scenario

Ramesh has Gross Total Income of ₹12 lakh in TY 2026-27. He donates ₹60,000 to PM CARES Fund (100%, no limit) and ₹1,20,000 to a local orphanage trust (50%, with qualifying limit).

Calculation

Gross Total Income (GTI):              ₹12,00,000

Donation 1 — PM CARES Fund:
  Amount:                              ₹   60,000
  Deduction (100%, no limit):          ₹   60,000

Donation 2 — Orphanage Trust (50%, with limit):
  Amount donated:                      ₹ 1,20,000
  Qualifying limit (10% of GTI):       ₹ 1,20,000
  Eligible (lower of two):             ₹ 1,20,000
  Deduction at 50%:                    ₹   60,000

Total 80G deduction:                   ₹ 1,20,000
Adjusted Gross Total Income:           ₹10,80,000

Result

Ramesh saves approximately ₹37,440 in tax (at 30% + 4% cess) by claiming ₹1.20 lakh in 80G deductions. The orphanage must have valid 80G approval under Section 354 for the deduction to be valid.

Related Sections

Section 35480G Approval — Enabling Tax Deduction for Donors
Section 135Deduction for Donations for Scientific Research and Rural Development (80GGA)
Section 332Registration of Charitable Trusts and NPOs

Still have questions about Section 133?

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Section references are based on the Income Tax Act 2025 (Tax Year 2026-27). Examples are illustrative — verify with a Chartered Accountant before filing.