Compliance News · Donor Guide

Last reviewed: 24 September 2026. Most guidance on Section 80G is written for the NGO issuing the receipt. This one is written for the person or business claiming the deduction – because since AY 2022-23, your 80G claim is only as good as the donee's own compliance. If the NGO you donated to never filed its Form 10BD statement, your deduction can be questioned even with a perfectly genuine donation and a receipt in hand.

Quick answer
Cash limitOnly up to Rs 2,000 of a donation can be in cash and still qualify – the rest must be via cheque, bank transfer or other traceable mode.
The new dependencyYour deduction is matched against the donee's Form 10BD filing; get Form 10BE (the donation certificate) as proof.
Qualifying limitFor donations subject to the 10% cap, the limit is 10% of your adjusted gross total income, not your full income.
Regime mattersSection 80G deduction is available only under the old tax regime – not under the new regime.

The checklist, before you donate and before you claim

CheckWhy it matters
Donee's 80G registration is currentAn expired or lapsed registration means no valid deduction, regardless of the donation itself – see our note on 80G renewal and CBDT's condonation relief for how registrations can lapse
Payment modeOnly up to ₹2,000 in cash qualifies; anything above must be cheque, DD, electronic transfer or other traceable mode
Donation is monetary, not in kindGoods, services or in-kind contributions are not eligible for Section 80G deduction, however genuine
Deduction category (100%/50%, with/without qualifying limit)Determines how much of the donation actually reduces your taxable income – not every eligible donation gets the full amount as deduction
Form 10BE received from the doneeThis is now the donor's proof, generated only after the donee reports the donation in its own Form 10BD statement

Why Form 10BE changed everything for donors

Since AY 2022-23, NGOs and institutions with 80G approval must file an annual statement of donations received (Form 10BD) and issue each donor a certificate (Form 10BE). Your income-tax return's 80G claim is cross-checked against what the donee actually reported. A genuine donation, paid by cheque, with a receipt from a validly registered NGO, can still run into trouble at assessment if the NGO simply failed to file its Form 10BD – a compliance failure on the donee's side that becomes the donor's problem.

Worked example. An individual donates ₹50,000 by bank transfer to a registered trust in March, receives an acknowledgement receipt at the time, and claims the 80G deduction when filing the return in July. If the trust files its Form 10BD late (or not at all) for that financial year, Form 10BE may not be generated in time, and the donor's claim can face a mismatch query even though the donation itself was entirely genuine. Practical takeaway: ask the donee, before year-end, whether they file Form 10BD on schedule – it is a fair, ordinary due-diligence question for any donation above a token amount.

Understanding the 100%/50% and qualifying-limit categories

Not every 80G-eligible donation gives the same tax benefit. Broadly:

  • 100% deduction, no qualifying limit – a small set of funds (such as the National Defence Fund and similarly specified funds) where the full donation is deductible without reference to your income.
  • 50% deduction, no qualifying limit – certain other specified funds.
  • 100% or 50% deduction, subject to a qualifying limit – most donations to other approved trusts and institutions fall here, where the deductible amount for this category is capped at 10% of your adjusted gross total income (broadly, gross total income reduced by certain capital gains taxed at special rates and other Chapter VI-A deductions), not your full income.

Check which category your specific donee falls into – the receipt or the donee's own disclosure should indicate this, and it changes the actual tax benefit meaningfully.

The regime trap

Section 80G, like most Chapter VI-A deductions, is available only if you file under the old tax regime. If you opt for the new regime, your 80G donations – however well-documented – give you no tax benefit at all. This should be part of your old vs new regime comparison before filing, not an afterthought discovered after the return is submitted.

Frequently asked questions

I donated Rs 5,000 in cash. Can I claim the full amount under 80G?

No. Only up to Rs 2,000 of a cash donation qualifies for deduction. If you paid Rs 5,000 entirely in cash, only Rs 2,000 is eligible; the remaining Rs 3,000 gets no deduction unless paid through a traceable mode instead.

The NGO gave me a receipt but no Form 10BE. Is my deduction still valid?

The receipt alone is no longer sufficient assurance. Form 10BE, generated after the donee files Form 10BD, is the current mechanism your claim is checked against. Follow up with the donee for Form 10BE, ideally before filing your return.

Can I claim 80G deduction for goods donated to an NGO, like food or clothing?

No. Section 80G applies to monetary donations only. In-kind contributions, however valuable or genuinely given, do not qualify for this deduction.

Does my employer need to know about my 80G donations for TDS on salary?

You can declare eligible 80G donations to your employer for TDS computation purposes only in specific circumstances allowed under the rules; many taxpayers instead claim it directly while filing their return. Confirm which route applies to your situation.

Is there a maximum amount I can donate and claim under 80G?

There is no absolute cap on the donation itself, but the deductible amount for qualifying-limit categories is capped at 10% of your adjusted gross total income – donating more than that does not increase your deduction for that category.

I am filing under the new tax regime this year. Should I still donate for tax purposes?

If tax deduction is the primary motive, note that 80G gives no benefit under the new regime. Donating is still worthwhile for its own reasons, but do not expect a tax deduction unless you file under the old regime.

Want your 80G claims to survive scrutiny without a scramble?

We verify donee registration status and reconcile your Form 10BE certificates before you file.

Income Tax Filing NGO & Section 8 Compliance Talk to us

This article summarises Section 80G donor-side rules as understood on the date of review. General information, not advice on your specific facts – confirm details against the current forms/portal and consult us or your tax advisor before acting. CA Somesh Chandak & Associates, FRN 158694W.