What is 80G Tax Exemption and How Can You Take Benefit from It?

sakshi ngo
May 2
2 min read

Contributing to a cause close to your heart not only improves the lives of others — it can even help you cut taxes. As per Section 80G of the Indian Income Tax Act, you can avail yourself of a deduction on the money contributed to charitable organizations. It is a big push for those who desire to contribute to social change as well as save taxes.

What is 80G Tax Exemption?

Section 80G allows taxpayers both individuals and companie to deduct certain donations made to charitable organizations from their total taxable income. This exemption is available only if the NGO you’re donating to is registered as an 80G exempt NGO with the Income Tax Department of India.

Depending on the organization and the type of donation, you can qualify for a 50% or even a 100% deduction on the value of the donation with or without a limit.

How Does It Work?

Assume you give ₹10,000 to an NGO that is eligible for 50% deduction under 80G. When you file your income tax return, you can claim ₹5,000 as a deduction. This reduces your taxable income and therefore the tax payable by you. If the NGO is eligible for 100% deduction you can claim the entire ₹10,000.

Important: Always receive a proper receipt and make sure the NGO gives their 80G registration number and validity information on the donation certificate.

Why Donate to NGOs Under 80G?

Financial gain: You really save tax by giving to an NGO.
Accountability: 80G registered NGOs are governed and have to be transparent.
Dual Impact: Your money goes to social causes and benefits you financially.

If you’re planning to donate to NGO for a social cause, make sure the NGO is eligible under Section 80G to maximize your tax benefits.

Types of Donations Eligible

Donations to Prime Minister’s National Relief Fund, National Defence Fund

Contributions to approved NGOs working in education, healthcare, rural development, etc.

Donations to NGOs actively involved in disaster relief, women empowerment, child welfare, and more.

Some donations qualify for:

100% deduction without limit
50% deduction without limit
100% deduction with limit
50% deduction with limit
Verify your selected NGO's 80G status to find out the category applicable.

Things to Keep in Mind

The donation should be in cash.
Payments over ₹2,000 should be made in non-cash modes.
You should retain the donation receipt, Form 10BE, and the NGO's PAN and 80G details.

Final Thoughts

In today’s world, giving back is more important than ever — and the Indian tax system rewards your generosity. Whether you’re supporting education, healthcare, disaster relief, or animal welfare, saving tax by donating ngo is a powerful way to make an impact and enjoy tax savings at the same time.

So this year financially, give to NGO for some social cause of your choice and make your gift worthwhile — for society as well as your money