Deduction under Section 80G / 80GGC

Section 80G gives a deduction for donations — 100% or 50% of the amount, and for some funds only up to a “qualifying limit” of 10% of your adjusted gross total income. Section 80GGC allows a deduction for a contribution to a political party or electoral trust, paid other than in cash. Both are available only under the old regime.

1. Put each 80G donation in one of four buckets: 100% without a limit, 50% without a limit, 100% subject to the qualifying limit, or 50% subject to the limit (s.80G).
2. The qualifying limit is 10% of adjusted gross total income (GTI less long-term capital gains, certain other incomes and other Chapter VI-A deductions).
3. Donations in the “no-limit” buckets are allowed in full (or at 50%); “with-limit” donations are first capped at the qualifying limit, then the 50% rate is applied.
4. A 80GGC contribution to a political party is fully deductible, but only if it was paid by any mode other than cash.
5. The total deduction cannot exceed your gross total income.

You donate ₹50,000 to a charitable trust that qualifies for 50% deduction subject to the limit. Your adjusted gross total income is ₹10,00,000.

1. Qualifying limit = 10% × ₹10,00,000 = ₹1,00,000.
2. Donation ₹50,000 is within the ₹1,00,000 limit, so the eligible amount is ₹50,000.
3. Deduction = 50% × ₹50,000 = ₹25,000.

You can claim a ₹25,000 deduction under section 80G.

No. Both deductions are available only under the old tax regime; the new regime (section 115BAC) does not allow them.

A cash donation above ₹2,000 gets no 80G deduction. An 80GGC political contribution must be paid other than in cash to qualify at all.

For certain 80G funds, the deduction is restricted to 10% of your adjusted gross total income. Donations to those funds above that ceiling are not deductible.

Funds such as the Prime Minister’s National Relief Fund and the National Defence Fund qualify for a 100% deduction with no qualifying limit.

Yes — keep the stamped receipt and the donee’s registration/80G approval number; many donations are also pre-filled from the donee’s statement in Form 26AS / AIS.