80G tax saving calculator
See how much income tax you save when you donate under Section 80G, and what your gift really costs after the deduction. Built on the correct 50 percent rule and the 10 percent qualifying limit.
How the 80G benefit works
Section 80G of the Income Tax Act, 1961 lets you deduct part of what you donate to a registered organisation from your taxable income. Dnyanarchana is registered under 80G (No. AADTD4705CF20222), so your donation qualifies.
For an organisation like ours, the deduction is 50 percent of your donation, and it is subject to a qualifying limit of 10 percent of your adjusted gross total income. In plain terms: take the smaller of your donation and 10 percent of your income, then half of that amount is deducted from your taxable income. Your actual tax saved is that deduction multiplied by your income tax slab rate, plus 4 percent health and education cess.
One important point that many calculators get wrong: this deduction is available only under the old tax regime. If you file under the new regime, which is now the default, you cannot claim 80G. The calculator above lets you pick your regime and tells you the truth either way.
An example
Say your income is 12,00,000 and you donate 20,000. Ten percent of your income is 1,20,000, so your full donation is within the qualifying limit. Half of 20,000 is a 10,000 deduction. At the 30 percent slab plus 4 percent cess, that is about 3,120 saved. Your 20,000 gift effectively costs you around 16,880, and it funds real work for disabled people in Chandrapur.
Frequently asked questions
How much tax do I save under Section 80G?
For a donation to Dnyanarchana, 50 percent of the qualifying amount is deductible from your taxable income. The qualifying amount is capped at 10 percent of your adjusted gross total income. Your actual tax saved is that deduction multiplied by your income tax slab rate, plus 4 percent cess. The calculator does this for you.
Is 80G available under the new tax regime?
No. The deduction under Section 80G is available only if you file under the old tax regime. Under the new (default) regime most deductions including 80G are not allowed. The calculator lets you choose your regime and shows zero benefit honestly if you pick the new regime.
What is the 80G qualifying limit?
Donations to most NGOs, including Dnyanarchana, fall under the category that allows a 50 percent deduction subject to a qualifying limit. That limit is 10 percent of your adjusted gross total income. Any donation above that limit still helps, but only the part within the limit counts for the deduction.
Is my donation to Dnyanarchana 80G deductible?
Yes. Dnyanarchana Apangsneha Bahuuddeshya Sanstha is registered under Section 80G (registration No. AADTD4705CF20222) and 12A (No. AADTD4705CE20216). You receive an 80G receipt by email after you donate, which you use when filing your return.
Is this calculator official tax advice?
No. It is an estimate to help you understand the benefit. It assumes your adjusted gross total income is close to the income you enter and does not include surcharge on very high incomes. For your exact figure, check your income tax return or a tax professional.
This tool gives an estimate to help you plan. It is not tax advice. Confirm your exact figure with your income tax return or a tax professional.