If you donate to a charity or relief fund, you may have wondered whether the 80G deduction under the new tax regime still applies to you. It is a fair question, especially because Section 80G can provide a tax deduction for eligible charitable donations under the old regime. The short answer is that the Section 80G deduction is not available if you choose the new tax regime, regardless of which eligible fund or institution you donate to.
India’s tax landscape changed significantly after the Finance Act 2020 introduced the new tax regime. Lower slab rates came with the removal of many popular deductions, including Section 80G. Understanding exactly how this affects your charitable donations is important before you file your return or plan your donations for the year.
In this guide, we will walk you through the key rules around Section 80G, explain what changes under the new tax regime, and show you how to plan your charitable contributions without making tax assumptions.
What Is Section 80G and Why Does It Matter?
Section 80G of the Income-tax Act allows taxpayers to claim a deduction for eligible donations made to approved charitable organisations and specified government relief funds. The deduction can reduce your taxable income and, consequently, your tax liability under the old tax regime.
For example, if your taxable income is Rs 10 lakh and you donate Rs 50,000 to an eligible fund qualifying for a 100% deduction without the applicable qualifying limit, the donation may reduce your taxable income to Rs 9.5 lakh. The exact deduction depends on the type of donation, the organisation receiving it, and the applicable conditions.
Who Can Claim 80G?
- Individual taxpayers
- Hindu Undivided Families (HUFs)
- Companies and firms
- Non-resident Indians (NRIs), subject to applicable conditions
The deduction can generally be 50% or 100% of the eligible donation, depending on the receiving organisation and the applicable rules. Some categories are subject to a 10% limit of adjusted gross total income, while certain donations are not subject to this limit.
The New Tax Regime: A Quick Overview
The new tax regime, introduced in 2020 and made the default regime from Financial Year 2023-24 onwards, offers lower tax rates but removes most deductions and exemptions. Section 80G deduction is not available under the new tax regime.
For FY 2025-26 (Assessment Year 2026-27), the new regime slabs for individuals are:
| Income Slab | Old Tax Regime Rate | New Tax Regime Rate |
|---|---|---|
| Up to Rs 4 lakh | Nil* | Nil |
| Rs 4 lakh to Rs 8 lakh | 5%* | 5% |
| Rs 8 lakh to Rs 12 lakh | 20%* | 10% |
| Rs 12 lakh to Rs 16 lakh | 30%* | 15% |
| Rs 16 lakh to Rs 20 lakh | 30%* | 20% |
| Rs 20 lakh to Rs 24 lakh | 30%* | 25% |
| Above Rs 24 lakh | 30%* | 30% |
*Old-regime slab rates can differ based on age category, and the table is simplified for comparison.
The lower rates under the new regime can look attractive. However, choosing it means giving up most deductions under Chapter VI-A, including the Section 80G deduction for eligible charitable donations.ns under sections like 80C, 80D, HRA, and, most importantly for this discussion, 80G.
Is the 80G Deduction Allowed Under the New Tax Regime?
Here is the core of the matter: Section 80G deductions are not available under the new tax regime. If you opt for the new regime, you cannot claim a deduction under Section 80G for donations made to eligible NGOs, charitable institutions, religious organisations, or specified government funds. The Income Tax Department’s current ITR validation rules for AY 2026-27 specifically list Section 80G among the Chapter VI-A deductions that cannot be claimed when the new regime is selected.
What About PM CARES and Other National Funds?
This is an area where older tax articles can create confusion. Some donations, such as contributions to PM CARES Fund, Prime Minister’s National Relief Fund (PMNRF), and the National Defence Fund, can qualify for a 100% deduction under Section 80G when the taxpayer is otherwise eligible to claim Section 80G.
However, the fact that a donation qualifies for a 100% deduction under Section 80G does not mean the deduction remains available under the new tax regime. For FY 2025-26, Section 80G itself is not claimable under the new regime.
Therefore, if claiming a charitable donation deduction is important to you, you need to compare the old and new tax regimes before making your final tax-regime choice.
What About Donations to NGOs and Temples?
Donations to eligible NGOs, educational institutions, religious trusts, and other organisations approved under Section 80G can qualify for a deduction under the old tax regime, subject to the applicable conditions and limits.
Under the new tax regime, however, Section 80G cannot be claimed. The donation may still support the organisation and its charitable purpose, but it will not reduce your taxable income through Section 80G.at scenario.
Old Tax Regime vs New Tax Regime: Which Is Better for Donors?
If charitable giving is a regular part of your financial life, this comparison becomes relevant. The old regime allows eligible Section 80G deductions, while the new regime generally offers lower slab rates in exchange for giving up most Chapter VI-A deductions.
A Practical Indian Example
Suppose Ramesh, a salaried professional in Mumbai, earns Rs 12 lakh per year. He donates Rs 1 lakh to a registered NGO that qualifies for a 50% deduction under Section 80G. He also invests Rs 1.5 lakh in PPF under Section 80C and pays Rs 25,000 in health insurance premiums under Section 80D.
Under the old tax regime, assuming all these deductions are fully eligible, Ramesh could claim:
- Section 80C: Rs 1,50,000
- Section 80D: Rs 25,000
- Section 80G: Rs 50,000, being 50% of the Rs 1 lakh donation
This gives him total deductions of Rs 2.25 lakh from these three sections, subject to the specific conditions applicable to each deduction.
Under the new tax regime, these deductions are not available. His charitable donation does not reduce his taxable income under Section 80G, and the 80C and 80D deductions are also unavailable.
However, the new regime has lower slab rates and other benefits, so Ramesh should compare the final tax liability under both regimes rather than assuming that the old regime will automatically be better.
The key point is that if charitable giving is significant for you, the tax benefit under Section 80G is available only if you choose a regime in which the deduction can actually be claimed.
| Factor | Old Tax Regime | New Tax Regime |
|---|---|---|
| 80G deduction for eligible donations | Yes, subject to conditions | No |
| 80C deduction | Yes, up to Rs 1.5 lakh | No |
| 80D deduction | Yes, subject to limits | No |
| HRA exemption | Yes, if eligible | No |
| Standard deduction for salaried taxpayers | Rs 50,000 | Rs 75,000 |
| Tax slab rates | Higher | Lower |
| Suitable for taxpayers with substantial deductions | May be suitable | May be less suitable |
The right choice depends on your income, eligible deductions, salary structure, and overall tax liability. There is no universal answer.
How to Claim 80G Deduction the Right Way (Old Regime)
If you have opted for the old tax regime and want to claim your Section 80G deduction, there are a few important steps to follow.
Step 1: Check Whether the Organisation Is Eligible
Not every charity or organisation qualifies for Section 80G. The donee organisation must have the required approval under Section 80G.
Before making a large donation, verify the organisation’s eligibility and obtain the relevant donation details.
Step 2: Make the Donation Through an Eligible Payment Mode
Cash donations above Rs 2,000 are not eligible for Section 80G deduction. Therefore, for larger donations, use an eligible non-cash payment method and retain the payment evidence.
Step 3: Obtain the Donation Certificate
Keep the donation receipt and the relevant information provided by the organisation.
For eligible 80G donations, approved organisations are required to report donations to the Income Tax Department through Form 10BD and issue Form 10BE to donors. Form 10BE contains details such as the organisation’s PAN, approval information, and donation details.
Step 4: Check the Deduction Percentage
Different categories of donations can qualify for different deduction percentages and qualifying limits.
| Type of Donation | Deduction |
|---|---|
| Certain specified funds | 100%, subject to applicable conditions |
| Certain approved charitable institutions | 50% or 100%, depending on the category |
| Donations subject to qualifying limit | Subject to the applicable 10% adjusted gross total income limit |
| Other eligible donations | 50% or 100%, depending on the prescribed category |
Do not assume that every donation receives a 100% deduction. The applicable percentage and qualifying limit depend on the specific fund or institution.
Step 5: Report the Donation Correctly in Your ITR
When filing your ITR under the old tax regime, enter the required donation details in Schedule 80G. The donation details should match the information reported by the donee organisation and the Form 10BE issued to you.
The Income Tax Department’s AY 2026-27 ITR validation rules specifically require the donation information reported in Schedule 80G to satisfy the applicable validation checks.
Step 6: Keep Your Supporting Documents
Keep your donation receipt, Form 10BE, payment proof, and other relevant records safely. These documents can help substantiate your deduction if the Income Tax Department asks for supporting information.
Should You Switch Back to the Old Regime Just for 80G?
This is a question worth thinking through carefully. Do not switch to the old tax regime solely because you donated to an eligible item for Section 80G. Instead, compare the total tax benefit available under the old regime, including 80G and other eligible deductions, with the tax payable under the new regime.
Under the new tax regime, the Section 80G deduction is not available. If charitable donations form a significant part of your annual financial planning, the old regime may therefore become more attractive, particularly when you also have other eligible deductions such as Section 80C, Section 80D, HRA, or other benefits available under the old regime.
However, the outcome depends on your income, eligible deductions, rent, investments, insurance premiums, donation amount, and other tax circumstances. A regime that saves tax for one taxpayer may not necessarily be the better choice for another.
5 Smart Tips for Taxpayers Who Donate Regularly
- Verify the organisation’s 80G approval before donating. Make sure the recipient is eligible under Section 80G and that the donation qualifies for deduction. However, remember that even an eligible 80G donation does not provide a deduction if you choose the new tax regime.
- Avoid cash donations above Rs 2,000. Donations made in cash exceeding Rs 2,000 are not eligible for deduction under Section 80G. Use banking channels such as cheque, bank transfer, or UPI instead.
- Donate within the relevant financial year. To claim a deduction for a particular financial year, the eligible donation must actually be made during that financial year. A future commitment or an undated promise to donate does not create a deduction for the current year.
- Compare the tax regimes every year. Your income, investments, rent, insurance premiums, and donations can change from year to year. Compare the actual tax payable under both regimes before deciding which option works better for you.
- Do not confuse 80G with 80GGA and 80GGC. These are separate provisions with different purposes and eligibility rules. Section 80GGA generally relates to eligible donations for scientific research or rural development, while Section 80GGC deals with eligible contributions to political parties or electoral trusts.
Most importantly, do not donate purely for the tax benefit. Donate because you believe in the cause. Any eligible tax deduction should be viewed as a potential financial benefit of an otherwise genuine charitable contribution, not as the primary reason for donating.
If you are uncertain about how your donations and other deductions affect your regime choice, a review with a qualified tax professional can help you compare the numbers before filing.
Final Words: Know Your Regime, Plan Your Giving
The 80G deduction under the new tax regime is not available. If charitable giving is a regular part of your financial life, the old tax regime may allow you to claim an eligible 80G deduction, subject to the conditions applicable to the donation and the recipient organisation.
However, regime choice should never be based on 80G alone. Your decision should consider your complete financial picture, including salary, rent, investments, insurance, eligible deductions, charitable donations, and the tax payable under both regimes. A yearly comparison can help you determine which regime is more tax-efficient for your specific circumstances.
Frequently Asked Questions
1. Can I claim the 80G deduction if I have opted for the new tax regime?
No. Section 80G deduction cannot be claimed under the new tax regime under Section 115BAC. This applies even when the donation is made to an organisation or fund that is otherwise eligible for deduction under Section 80G. If you want to claim an eligible 80G deduction, you generally need to opt for the old tax regime and satisfy the applicable conditions.
2. Is a cash donation to a charity eligible for 80G?
Cash donations exceeding Rs 2,000 are not eligible for deduction under Section 80G. For eligible donations above this amount, use permitted non-cash payment methods such as cheque, bank transfer, or UPI. The donation must also meet the other conditions prescribed under Section 80G.
3. How do I know if an NGO is approved under Section 80G?
Before claiming a deduction, verify that the organisation is eligible under Section 80G. You should also retain the donation documentation provided by the organisation. The donee is required to report eligible donations to the Income Tax Department through Form 10BD, and the donor is provided with Form 10BE containing the relevant donation details. Your claim should be consistent with the information reported by the donee.
4. Can I switch between the old and new tax regimes every year?
Salaried individuals without business or professional income can generally choose between the old and new tax regimes each year when filing their Income Tax Return. However, taxpayers who have income from a business or profession face additional restrictions when switching regimes. The applicable rules should be checked for the relevant financial year before making the choice.
5. What is the maximum deduction I can claim under Section 80G?
There is no single maximum deduction applicable to every donation. The deduction depends on the category of the eligible fund or organisation and the conditions prescribed under Section 80G.
Depending on the category, a donation may qualify for a 100% or 50% deduction, and certain donations are subject to a qualifying limit based on 10% of adjusted gross total income. Where a qualifying limit applies, the amount exceeding that limit does not qualify for deduction.
Also remember that these 80G benefits are relevant when you are eligible to claim deductions under the old tax regime. Section 80G cannot be claimed under the new tax regime.
Disclaimer
The information provided in this blog is for educational and informational purposes only and should not be construed as investment advice. Please consult a qualified financial advisor before making any investment decisions. Shashikant Chanderkumar Mudaliar (ARN: 319377), operating under the brand name VSJ FinMart, is an AMFI-registered Mutual Fund Distributor (MFD) and does not provide investment advisory services. Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Please read all scheme-related documents carefully before investing. Registration details can be verified at www.amfiindia.com/locate-distributor.