1. What 80G covers
Section 80G of the Income Tax Act, 1961 allows resident taxpayers to claim a deduction for donations to approved charitable institutions when filing under the old tax regime. Under the new regime (Section 115BAC, default from AY 2024-25), 80G is not available.
Two things must be true for a donation to qualify:
- The receiving institution must be registered under 80G with the IT Department, with the registration valid on the donation date.
- The donation must be in money (cheque, NEFT, UPI, card, demand draft). Cash donations over ₹2,000 are NOT eligible.
2. The four categories of deduction
Institutions registered under 80G fall into four categories. The category determines how much of your donation you can deduct.
| Category | Deduction | Cap | Examples |
|---|---|---|---|
| I | 100% | No cap | PM CARES, National Defence Fund, PM National Relief Fund |
| II | 50% | No cap | Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust |
| III | 100% | 10% of adjusted GTI | Government schemes for family planning, sport, scientific research |
| IV | 50% | 10% of adjusted GTI | Most temples, gauseva trusts, NGOs, gurukuls, educational charities |
“Adjusted gross total income” = your gross total income minus deductions under Sections 80C, 80CCC, 80CCD, etc., and minus exempt income and long-term capital gains. Most SevaCart causes fall in Category IV.
3. Worked example
Donation to a temple (Category IV, 50% w/ 10% cap)
Step 1: Cap = 10% × ₹12,00,000 = ₹1,20,000
Step 2: You donated ₹50,000 (under the cap)
Step 3: Eligible donation = ₹50,000
Step 4: Deduction = 50% × ₹50,000 = ₹25,000
Tax saved (30% slab) = ₹7,500
If you had donated ₹2,00,000 to the same institution, only ₹1,20,000 (the cap) would be eligible, and your deduction would still be 50% of that = ₹60,000.
4. What your 80G receipt must show
Per Rule 18AB of the Income Tax Rules, the receipt must include:
- Donor’s name and PAN
- Donation amount in words and figures
- Donation date and mode (cheque / UPI / NEFT)
- Institution’s name, address, and PAN
- Institution’s 80G registration number with current validity period
- Signature of an authorised signatory + institution’s seal
Since AY 2022-23, the institution must also file Form 10BDwith the IT Department listing every donor for the year. Your donation then appears automatically in your AIS (Annual Information Statement) on the IT portal — and the receipt you hold must match the AIS entry exactly. Mismatches trigger scrutiny.
5. How to claim it in your ITR
- Confirm you are filing under the old tax regime. New regime = no 80G.
- In ITR-1 or ITR-2, go to the deductions section and enter the donation under Schedule 80G.
- Fill in: institution name, PAN, address, 80G registration number, donation amount.
- The portal auto-applies the category percentage. Verify the deduction matches.
- Keep the original receipt for at least 6 years (IT Dept can request it).
- Cross-check the AIS entry. Raise feedback on AIS if your donation does not appear.
6. What does NOT qualify
- Sevas (puja fees, archana, abhisheka) — these are ritual services, not donations. The platform fee and seva fee both fall outside 80G.
- Cash donations over ₹2,000. Use cheque/UPI/NEFT instead.
- Donations in kind (food, clothes, equipment).
- Donations to political parties (those go under Section 80GGC).
- Donations to foreign institutions, or to Indian institutions whose 80G has lapsed.
- Donations made under the new tax regime (115BAC).
7. 80G on SevaCart
Each cause listing on SevaCart shows whether the receiving institution is 80G-registered, the category, and the registration number. After a donation:
- The institution issues you a stamped 80G receipt by email within 7 days of settlement.
- The institution files Form 10BD by the deadline so your AIS reflects the donation.
- Sevas (ritual offerings) carry a clear tag that they are NOT 80G-eligible.