How can HNIs contribute to evidence-based philanthropy in India?

HNIs can play a catalytic role by funding high-impact programs backed by rigorous data, supporting better monitoring and evaluation, and helping shift the culture of giving in India toward one that’s strategic, accountable, and outcomes-focused.

Why is evidence-based philanthropy important for long-term change?

Because doing good isn’t enough—doing what works is what leads to real, lasting progress. By focusing on proven solutions, donors can ensure their support goes further and actually solves problems at scale.

How can I find credible organizations for evidence-based giving?

Start with trusted sources that do the heavy lifting for you—like our recommendations at Impactful Giving, which are grounded in rigorous research, cost-effectiveness analysis, and impact data.

Can technology improve evidence-based philanthropy in India?

Absolutely. From real-time data tracking to transparent reporting platforms, technology can make it easier to measure results, compare programs, and direct funds where they’ll have the most impact.

What are the challenges of evidence-based philanthropy in India?

Some nonprofits lack strong data, and tracking outcomes can be complex. But these aren’t deal-breakers. Donors can start small, fund impact measurement, and treat giving as a learning journey—improving over time with better evidence.

Can donating to lead poisoning prevention programs make a significant impact?

Yes—more than most people realise. Childhood lead poisoning in India is massive in scale, hugely underfunded, and completely preventable. Strategic donations to the right organisations can help shift national regulations, reform supply chains, and protect millions of children—often through one-time, systemic changes. This is an area where a relatively small investment can lead to long-term, large-scale outcomes.

How do I know if my child’s school is lead-safe?

Most schools in India aren’t regularly tested for lead. The biggest risks come from old paint, drinking water systems, and contaminated materials like toys or utensils. You can ask whether the school uses certified lead-free paint, whether the water has been tested, and whether learning materials meet basic safety standards. If the answers aren’t clear, it’s worth pushing for change. In this case, a little awareness goes a long way.

How do local governments help reduce lead poisoning?

Governments play a big role—but they often need a push. Regulations around lead in paint, cookware, toys, and cosmetics already exist in India. The problem is that enforcement is patchy, and there’s very little awareness. This is where your support can help: organisations like i-LEAP work directly with policymakers to strengthen regulations and make sure they’re actually followed. Sometimes, solving a public health crisis isn’t about more rules—it’s about getting the existing ones to work.

What kind of donation efforts directly help children affected by lead poisoning?

The most effective efforts are preventative. Once the damage is done, it’s often permanent—so stopping exposure before it happens is key. That means funding regulation, better supply chains, and public awareness in high-risk areas. If you want every rupee to go as far as possible, focus on stopping the exposure at the source.

Are there specific organisations working on lead poisoning?

Yes. Both are small and highly cost-effective. They aim to fix the system instead of treating the symptoms.i-LEAP (India Lead Elimination Action Partnership) builds the local evidence, pushes for smarter policy, and coordinates Indian efforts.LEEP (Lead Exposure Elimination Project) works globally, helping manufacturers and governments transition to lead-free paint and other safer products.

Can lead poisoning affect a child’s IQ?

Yes. Lead is a neurotoxin. Even low levels of exposure can permanently reduce IQ and affect memory, behaviour, and school performance. These effects aren’t just academic—they translate into lower lifetime earnings and poorer health outcomes. It is a devastating yet invisible risk facing our children.

Can lead poisoning be reversed?

Unfortunately, no. Once lead has entered a child’s body, especially at a young age, the cognitive and neurological damage is irreversible. That’s why prevention is so crucial. The good news is that we can prevent exposure affordably, effectively, and at scale. But only if we act early.

Understanding Tax Benefits for Donations: How You Can Save on Taxes Through Section 80G and 80GGA

Chetan Kharbanda
Aug 1
5 min read

Contributing to charitable causes is not only a noble act but also offers significant tax exemptions on donations in India. The Income Tax Act provides substantial relief through Section 80G and Section 80GGA, allowing taxpayers to reduce their tax liability while supporting meaningful causes. This comprehensive guide explores how these provisions work and how you can maximise your 80G tax exemption benefits.

What Are the Tax Benefits for Donations in India?

The Indian government encourages philanthropy through structured donations for tax deduction schemes under the Income Tax Act, 1961. These provisions enable taxpayers to claim deductions ranging from 50% to 100% of their donated amount, effectively reducing their taxable income while supporting social welfare initiatives.

Section 80G: Tax Exemption on Donations to Charitable Institutions

Section 80G allows taxpayers to claim deductions for donations made to specified relief funds and charitable institutions. This provision applies to individuals, companies, partnerships, Hindu Undivided Families (HUFs), and even Non-Resident Indians (NRIs), making it accessible to a broad spectrum of taxpayers.

Key Features of 80G Tax Exemption:

Deductions available for donations to approved charitable organizations
Tax savings ranging from 50% to 100% of donated amount
Available only under the old tax regime
Maximum limit of 10% of Adjusted Gross Total Income (AGTI) for certain categories

Section 80GGA: Donations for Scientific Research and Rural Development

Section 80GGA provides donation for tax deduction benefits specifically for contributions toward scientific research and rural development. Unlike Section 80G, this provision offers 100% deduction on the entire donated amount without any maximum limit, subject to certain conditions.

Types of Donations Eligible for Tax Deductions

Section 80G Categories

Donations under Section 80G are classified into four distinct categories:

Category 1: 100% Deduction Without Qualifying Limit

National Defence Fund
Prime Minister's National Relief Fund
National Foundation for Communal Harmony
National/State Blood Transfusion Council
National Children's Fund

Category 2: 50% Deduction Without Qualifying Limit

Prime Minister's Drought Relief Fund
Indira Gandhi Memorial Trust
University or educational institution of national eminence

Category 3: 100% Deduction Subject to 10% AGTI Limit

Donations to local authorities for family planning
Indian Olympic Association contributions

Category 4: 50% Deduction Subject to 10% AGTI Limit

Donations to local authorities for general charitable purposes
Contributions to approved NGOs and public charitable trusts
Religious institutions notified by the government

Section 80GGA Eligible Donations

Donation for tax deduction under Section 80GGA includes:

Scientific research associations approved under Section 35(1)(ii)
Social science or statistical research institutions under Section 35(1)(iii)
Rural development programs under Section 35CCA
Projects approved under Section 35AC

How to Claim Tax Deductions on Donations: Step-by-Step Guide

Eligibility Requirements

To claim 80G tax exemption, taxpayers must:

Opt for the old tax regime (new regime doesn't allow Chapter VI-A deductions)
Donate to organizations with valid 80G registration
Make payments through prescribed electronic modes
Maintain proper documentation

Documentation Required

Essential Documents for Tax Exemption on Donation:

Duly stamped receipt from the charitable organization
Organisation's 80G registration number and PAN
Mode of payment proof (for amounts above ₹2,000)
Bank statements showing the transaction

Note: Organisations must submit Form 10BD for your donation, which automatically appears in your tax portal at the end of the financial year. This allows you to claim the tax deduction while filing you annual return

Payment Mode Restrictions

Electronic payments preferred (UPI, NEFT, RTGS, cheque)
Cash donations limited to ₹2,000 per financial year
In-kind donations (food, clothes, materials) are not eligible

Donation for Maximum Tax Saving: Strategic Approaches

Understanding Tax Savings by Income Bracket

The actual tax savings depend on your marginal tax rate:

Tax Savings on ₹1 Lakh Donation:

20% tax slab: Save ₹10,400, net cost ₹89,600
30% tax slab: Save ₹15,600, net cost ₹84,400
30% + 10% surcharge: Save ₹17,160, net cost ₹82,840
30% + 37% surcharge: Save ₹21,372, net cost ₹78,628

Optimization Strategies

Maximise Your Donation for Tax Deduction:

Timing Strategy: Concentrate donations in high-income years
Family Planning: Utilise each family member's separate 10% AGTI limit
Regime Selection: Choose the old tax regime to access deductions
Documentation: Maintain perfect records for all donations

What is Adjusted Total Income and Its Impact?

Adjusted Gross Total Income (AGTI) is your total income minus deductions under sections 80C to 80U (except 80G). For donations with qualifying limits, you can claim deductions up to 10% of your AGTI.

Example Calculation:

Gross Total Income: ₹10,00,000
Other 80C deductions: ₹1,50,000
AGTI: ₹8,50,000
Maximum 80G deduction limit: ₹85,000 (10% of AGTI)

Key Differences Between Section 80G and Section 80GGA

Aspect	Section 80G	Section 80GGA
Purpose	Charitable institutions	Scientific research & rural development
Deduction Rate	50% to 100%	100%
Maximum Limit	10% of AGTI (for some categories)	No limit
Eligibility	All taxpayers	Excludes business/profession income holders
Cash Limit	₹2,000	₹2,000

Tax Exemptions for Donations to NGOs: Choosing Evaluated Organizations

When selecting NGOs for tax exemption on donations, ensure they have:

Valid 80G registration from the Income Tax Department
Current registration status (verify on incometaxindia.gov.in)
Proper documentation capabilities
Transparent financial practices

Recent Updates and Compliance Requirements

Budget 2024-25 Changes

No significant changes to Section 80G provisions
Continued emphasis on electronic payment modes
Enhanced scrutiny of charitable organizations

Compliance Essentials

File returns under old tax regime
Report donations separately in ITR forms
Maintain receipts for potential verification
Verify organization credentials before donating

Frequently Asked Questions (FAQs)

1. What are the tax benefits for donations in India?

India offers tax deductions under Section 80G (50-100% of donation to charitable institutions) and Section 80GGA (100% for scientific research/rural development). These deductions reduce your taxable income, available only under the old tax regime with a maximum limit of 10% of AGTI for certain categories.

2. How do I claim tax deductions for donations under Section 80G?

To claim Section 80G deductions: choose the old tax regime, donate to 80G-registered organizations, make payments electronically (cash limited to ₹2,000), obtain proper receipts with registration numbers, and report donations in your ITR while maintaining all documentation.

3. Are all types of donations eligible for 80G tax exemptions?

No, only donations to specified organizations with valid 80G registration qualify. Donations to foreign trusts, political parties (covered under 80GGC), and in-kind contributions don't qualify. Cash donations above ₹2,000 are also ineligible for deductions.

4. What is the difference between Section 80G and Section 80GGA?

Section 80G covers charitable institutions with 50-100% deduction rates and 10% AGTI limits for some categories. Section 80GGA covers scientific research/rural development with 100% deduction and no limits, but excludes taxpayers with business/professional income.

5. Can I donate to any charity to claim tax deductions under Section 80G?

No, you can only donate to organizations with valid 80G registration from the Income Tax Department. Verify the organization's credentials and registration status on the official income tax website before making donations.

6. How can I maximize my tax savings from charitable donations?

Maximize savings by: concentrating donations in high-income years, utilizing family members' separate 10% limits, choosing the old tax regime, timing donations strategically around income spikes, and maintaining perfect documentation for all contributions.

7. Can donations made by corporations be eligible for tax deductions?

Yes, companies can claim Section 80G deductions under the same eligibility criteria as individuals, with corporate tax rates applied to calculate savings. However, CSR expenditure is separate and not deductible under Section 80G.