Claim audit · FY 2026-27
“Charitable donations under 80G are fully tax-free — you get back the entire amount”
The condition that decides it
Section 80G gives a deduction (not a rebate) of 50% or 100% of the donation amount, and only against the tax you would otherwise owe on Adjusted Gross Total Income. The deduction reduces taxable income — so a 30%-slab taxpayer donating ₹1,00,000 to a 50%-deductible fund saves ₹15,000 in tax, not ₹1,00,000. Only 100%-deductible no-limit funds (PM National Relief Fund, PMNRF, etc.) give the full donation as a deduction but still only reduce your income, not substitute for it.
What the department sees
LOW
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
A salaried taxpayer in the 30% slab (income ₹18,00,000) donates ₹1,00,000 to an NGO that qualifies for 50% deduction with a qualifying limit (the limit is 10% of Adjusted GTI = ₹1,80,000, so the full donation qualifies). The deduction is 50% of ₹1,00,000 = ₹50,000. This reduces taxable income from ₹18,00,000 to ₹17,50,000. Tax saving: ₹50,000 × 30% = ₹15,000 (plus surcharge/cess as applicable). The taxpayer is out ₹1,00,000 of cash and gets ₹15,000 back in tax — a net cost of ₹85,000. If they had donated to PM CARES Fund (100% deduction, no limit): deduction = ₹1,00,000, tax saving = ₹30,000 — net cost ₹70,000. Cash donations above ₹2,000 are entirely disallowed u/s 80G(5D), so the full ₹1,00,000 must be paid by cheque/UPI/bank transfer. In the new tax regime, section 80G is not available at all. Form 10BE from the donee is mandatory from AY 2022-23 onward — without it the deduction can be disallowed in scrutiny.
Questions people actually ask
There's a right way to do this
How do I claim 80G deduction on donations?
Sections: 80G, 80GGA, 80GGC · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims