TaxSaral

Section 133 · was Section 80G in the 1961 Act

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 it 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

Individual Claiming Multiple 80G Deductions

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).

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

Not sure how Section 133 applies to you? Ask a question or browse all sections.

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