Section 80G can cut tax on Diwali giving, but only in the old tax regime and only for approved funds and institutions. Some donations get a 100% deduction, others 50%, and some 50% donations are capped at 10% of adjusted gross total income. Cash above ₹2,000 does not qualify, so pay digitally and keep the receipt and Form 10BE.
What Section 80G Actually Covers

Section 80G of the Income-tax Act allows a deduction for donations made to specified relief funds, charitable institutions and trusts. It is not a blanket deduction for every good cause: the recipient must be approved, and the donation must be made in a qualifying way. Donations in kind, such as food or clothes, do not qualify, even when they are genuinely helpful. Only monetary donations count, and the rules on how you pay them matter as much as who you pay.
100% vs 50%: The Comparison That Matters

100% deduction, no qualifying limit: donations to specified national funds, such as the Prime Minister's National Relief Fund and the National Defence Fund, are generally deductible in full. 100% deduction, subject to a qualifying limit: some specified donations are deductible at 100%, but only up to 10% of your adjusted gross total income. 50% deduction, no qualifying limit: donations to certain specified funds and institutions are deductible at half the amount donated, with no additional income cap. 50% deduction, subject to a qualifying limit: many common charitable donations fall here — only half the donation counts, and the total qualifying amount is capped at 10% of adjusted gross total income. Always check the recipient's 80G status and the category it falls in before you donate, because the same ₹10,000 can produce a very different deduction depending on the fund.
The ₹2,000 Cash Trap

This is the trap that catches generous donors at Diwali. A cash donation of more than ₹2,000 is not eligible for a Section 80G deduction, even if the charity is approved and even if you have a receipt. Cash up to ₹2,000 can qualify, but for anything larger, pay by cheque, bank draft, UPI, card or net banking so there is a clear trail. Splitting a large cash gift into smaller cash amounts does not cure the problem. If you want the tax benefit, do not hand over large amounts in cash.
Form 10BE: The Proof You Cannot Skip

A receipt alone is no longer enough for most 80G claims. The approved institution must file a statement of donations received, and it issues Form 10BE to the donor, showing the donation amount and the donor's details. You should check that the name, PAN and amount on Form 10BE match your receipt and your return, and keep both documents. If Form 10BE is missing or wrong, ask the institution to correct it before you file, because a mismatch can delay or deny the deduction.
Worked Example: What a ₹10,000 Donation Really Saves

Take a ₹10,000 donation to a charity that qualifies for a 50% deduction, with no qualifying limit. Your deduction is ₹5,000, not ₹10,000. If you are in the 30% slab in the old regime, that ₹5,000 deduction can save about ₹1,500 in tax, before cess and surcharge. If the same ₹10,000 went to a 100% category with no limit, the deduction would be the full ₹10,000, and the saving at 30% would be about ₹3,000. The donation itself is not refunded; only your taxable income falls, so the saving is always a fraction of the gift.

Income Tax Calculator: New vs Old Regime

Loading calculator…

Open the full Income Tax Calculator: New vs Old Regime →

Use the live Income Tax calculator above to test your own income, regime and donation amount before you file.
Old Regime vs New Regime: Why 80G Can Be Worth Zero

Section 80G is available only under the old tax regime. Under the new regime, most Chapter VI-A deductions, including 80G, are not available, so a donation gives no tax saving even if the charity is approved. That does not make giving pointless, but it changes the maths: compare your total tax under both regimes, including all your deductions, before deciding whether donating for a tax benefit is worthwhile. If the new regime is cheaper overall, take that saving and give for the cause itself, not for a deduction you will not receive.

Frequently Asked Questions

What is Section 80G?
Which donations get 100% deduction and which get 50%?
Can I claim a deduction for a cash donation above ₹2,000?
What is Form 10BE and why do I need it?
Does Section 80G work in the new tax regime?
Do donations in kind, like food or clothes, qualify under Section 80G?

Before You Donate This Diwali

1. Check that the recipient is approved under Section 80G and confirm whether your donation gets a 100% or 50% deduction, and whether a 10% qualifying limit applies. 2. Pay digitally for any donation above ₹2,000, and never split a large cash gift to get around the cash limit. 3. Keep the receipt and check Form 10BE carefully, so the name, PAN and amount match your return. 4. Compare the old and new tax regimes, and use the Income Tax calculator to check the real saving before you file.

Try the Income Tax Calculator
This article is for educational purposes only and is not financial advice. Please consult a SEBI-registered investment adviser for personalized guidance. Investments are subject to market risk. This is general tax information, not personal tax advice.
Sources: Section 80G of the Income-tax Act, 1961; Form 10BE certificate of donation; Income Tax Department guidance on the old and new tax regimes.