The Income Tax Department has released a fresh set of FAQs on Section 80G as part of its ongoing NUDGE Campaign, aimed at improving compliance and reducing incorrect claims of donation-related tax deductions.
The FAQs reiterate that deductions under Section 80G are available only for donations made to eligible and approved trusts, institutions, or funds, and that such deductions fall into four distinct categories—100% or 50%, with or without a qualifying limit of 10% of Adjusted Gross Total Income (AGTI).
A key focus of the update is data-based verification. Deductions claimed by donors will now be strictly matched with information filed by the donee institutions in Form 10BD. Donors must ensure they receive a valid Form 10BE (Donation Certificate) from the donee, as any mismatch may lead to disallowance of the deduction or automated adjustments.
The FAQs also re-emphasise that cash donations exceeding Rs. 2,000 are not eligible for deduction and that Section 80G benefits are not available under the new tax regime (Section 115BAC). Additionally, the same donation cannot be claimed as a deduction under any other provision of the Income Tax Act.
Taxpayers are advised to verify the 80G registration status of donee institutions before making donations and to carefully report details in Schedule 80G while filing their ITRs.
For a detailed and practical understanding of Section 80G, including deduction categories, qualifying limits, AGTI calculation, Form 10BD/10BE compliance, and NUDGE Campaign clarifications, refer to our comprehensive Section 80G guide.