Is my donation tax deductible in India?
Whether a gift saves you tax comes down to the charity 80G registration and your tax regime. Here is how to check, with a worked example.
The short answer
Your donation is tax deductible in India if two things are true. The organisation holds a valid 80G registration, and you file under the old tax regime. If both hold, you can deduct part of your gift from your taxable income under Section 80G.
How to check the organisation
Look for an 80G registration number on the receipt or the donation page. A genuine 80G receipt shows the organisation name, its 80G number, its PAN and the amount. Dnyanarchana donations carry 80G No. AADTD4705CF20222, 12A No. AADTD4705CE20216 and PAN AADTD4705C, and we email a receipt for every online gift.
How much is deductible
For a regular charity the deduction is 50 percent of the eligible amount, where the eligible amount is the smaller of your donation and 10 percent of your adjusted gross total income. A few government funds allow 100 percent. So a tax deductible donation does not mean the whole amount comes off your tax, it means part of it reduces your taxable income.
A quick example
Donate 10,000 rupees, earn 12,00,000, file under the old regime at the 30 percent slab. Half of 10,000 is a 5,000 deduction. At 30 percent plus 4 percent cess that is about 1,560 saved, so your gift effectively costs you around 8,440. The calculator works this out for your own numbers.
When it is not deductible
A gift is not deductible if the organisation has no 80G registration, if you file under the new regime, or if you gave more than 2,000 rupees in cash. Give online to keep your donation eligible and easy to prove.