Tax Benefits on Donations

Make a Difference. Support a Cause. Avail Applicable Tax Benefits.

Your contribution to Nagore NNP Trust supports our ongoing charitable and community welfare activities, including food distribution, education support, healthcare assistance, orphan and child welfare, support for senior citizens and differently-abled persons, livelihood assistance, disaster relief and other humanitarian initiatives.

Nagore NNP Trust maintains the relevant registrations and statutory records applicable to its charitable activities. Eligible donors may be able to claim a deduction for qualifying donations under the applicable provisions of the Income-tax law.

Please note: Tax benefits are subject to the applicable law, the donor’s eligibility, the nature of the donation, payment mode, applicable tax regime and other conditions prescribed by the Income Tax Department.

Our Key Registrations & Compliance

Registration / Document	What it means	Benefit / Purpose
PAN	Permanent Account Number allotted by the Income Tax Department	Identifies the Trust for income-tax and statutory purposes
12A / 12AB Registration	Registration applicable to eligible charitable/religious trusts and institutions	Provides the framework for claiming income-tax exemption on eligible income of the Trust, subject to applicable conditions
80G Approval	Approval applicable to eligible charitable institutions/funds	Enables eligible donors to claim a deduction for qualifying donations, subject to applicable conditions
NGO DARPAN ID	Registration/ID on the Government’s NGO DARPAN portal	Helps identify the NPO on the DARPAN platform and facilitates access to certain government grant/application processes
Donation Reporting – Form 10BD	Donation information reported to the Income Tax Department	Required for eligible 80G donation reporting
Form 10BE	Certificate of donation issued to eligible donors	Provides the donor with the donation details required for claiming the applicable 80G deduction

The Income Tax Department requires approved 80G institutions to furnish donation details through Form 10BD and issue Form 10BE to donors.

NGO DARPAN is separate from 80G. The official DARPAN portal states that NITI Aayog provides an NPO with a DARPAN registration ID based on self-declared information; DARPAN registration itself does not constitute an endorsement or tax exemption.

What is Section 80G?

Section 80G provides a deduction for qualifying donations made to certain approved funds, charitable institutions and other eligible entities.

The deduction is not the same as a direct cash refund.

For example, if a qualifying donation is eligible for a 50% deduction, a donation of ₹10,000 may result in an eligible deduction of ₹5,000 from the income used for tax computation, subject to the applicable rules.

The actual tax saving depends on the donor’s taxable income and applicable tax rate.

80G Donation Deduction – Easy-to-Understand Table

The Income Tax Department describes four broad categories of donations under Section 80G:

Category	Deduction	Maximum / Qualifying Limit
100% Deduction – Without Limit	100% of eligible donation	No qualifying limit
50% Deduction – Without Limit	50% of eligible donation	No qualifying limit
100% Deduction – Subject to Qualifying Limit	100% of eligible donation	Generally subject to 10% of Adjusted Gross Total Income
50% Deduction – Subject to Qualifying Limit	50% of eligible donation	Generally subject to 10% of Adjusted Gross Total Income

The Income Tax Department’s current 80G guidance confirms these four categories and explains that the qualifying limit for the relevant categories is 10% of Adjusted Gross Total Income.

Important for Nagore NNP Trust

The exact percentage applicable to a donation must not be advertised as automatically 100% or 50% merely because the Trust has 80G approval.

The Trust should display the exact 80G approval/category applicable to the Trust based on its current Income Tax approval/order.

Therefore, on the website, we recommend saying:

Eligible donations may qualify for deduction under Section 80G, subject to applicable Income-tax rules and the conditions mentioned in the Trust’s valid 80G approval.

This is safer and more professionally accurate than promising every donor a fixed percentage.

Example: How the 80G Deduction Works

Suppose a donor makes a qualifying donation of ₹10,000.

Applicable Deduction	Eligible Deduction
100%	₹10,000
50%	₹5,000

Important: The deduction amount is not the same as the amount of tax saved.

For example, a ₹5,000 eligible deduction does not necessarily mean that the donor receives ₹5,000 back. The actual tax saving depends on the donor’s applicable tax rate and other tax circumstances.

Donate → Receipt → Form 10BD → Form 10BE → Claim Eligible Deduction

What is the 10% Qualifying Limit?

For donations falling under the “subject to qualifying limit” category, the qualifying limit is generally 10% of Adjusted Gross Total Income.

Simple example

If the donor’s Adjusted Gross Total Income is:

₹10,00,000

10% qualifying limit:

₹1,00,000

If the relevant donation category is subject to this limit, the calculation is based on the applicable qualifying amount rather than automatically applying the deduction to the entire donation.

The Income Tax Department provides the calculation methodology for Adjusted Gross Total Income and the 10% qualifying limit.

Important Payment Rules for 80G

1. Avoid cash donations above ₹2,000 for claiming 80G

The Income Tax Department states that no deduction under Section 80G is allowed for cash donations exceeding ₹2,000.

For this reason, donors should preferably make donations through traceable payment methods such as:

UPI
UPI QR
Debit/Credit Card
Net Banking
Bank Transfer
Other permitted electronic payment methods

2. Keep your donation details

Donors should retain:

Donation receipt
Transaction/payment reference
Donor name
PAN
Address/contact details
Form 10BE, where applicable

Form 10BD & Form 10BE

Your Donation Information Matters

For eligible 80G donations, the Trust is required to report prescribed donor and donation information to the Income Tax Department through Form 10BD.

After filing the required statement, the Trust issues Form 10BE, the donation certificate containing relevant details of the institution, donor and donation.

The Income Tax Department states that Form 10BD is mandatory for approved 80G entities that receive reportable donations, and Form 10BE is the certificate provided to donors.

Therefore, donors should provide accurate:

Name + PAN + Address + Email + Donation details

This helps ensure that the donation information can be reported correctly.

12A / 12AB – What Does It Mean?

The Trust’s 12A/12AB registration relates primarily to the Trust’s eligibility to claim income-tax exemption on eligible income, subject to fulfilment of the conditions prescribed under the Income-tax law.

It is important to understand:

12A/12AB is not the donor’s 80G deduction.

The donor’s tax deduction is associated with the applicable 80G approval and qualifying donation.

The Income Tax Department recognises registered charitable/religious trusts and institutions under the applicable exemption framework, subject to prescribed conditions.

PAN – Why Is It Important?

A Permanent Account Number (PAN) is the Trust’s tax identification number.

It is used for:

Income-tax compliance
Statutory reporting
Donation reporting
Identification of the Trust
Issuance/reporting of applicable donation certificates

The Trust’s PAN details should therefore be maintained accurately in all official donation and tax records.

NGO DARPAN – What Does It Mean?

NGO DARPAN is a Government of India platform for registering/identifying Non-Profit Organisations.

A DARPAN registration provides an NPO DARPAN ID. It is useful for identification and for accessing certain government grant/application processes.

However:

DARPAN registration is not the same as 80G approval and does not itself provide a donor with an income-tax deduction.

The official DARPAN portal specifically states that the DARPAN ID is generated based on self-declared information and does not itself confer endorsement, affiliation or recognition by NITI Aayog.

Old Tax Regime vs New Tax Regime

An Important Point for Donors

The availability of an 80G deduction also depends on the donor’s applicable tax regime.

For individuals, HUFs and certain other taxpayers, the new tax regime is the default regime. The Income Tax Department states that Chapter VI-A deductions such as 80G cannot generally be claimed under the new tax regime, except for specifically permitted deductions.

Therefore:

Tax Regime	80G Donation Deduction
Old Tax Regime	Generally available for eligible donations, subject to Section 80G conditions
New Tax Regime	80G deduction is generally not available
Company / Other Taxpayer	Subject to the applicable provisions and eligibility

Donors should check the tax regime applicable to them for the relevant tax year or consult their tax professional.

How to Claim Your Tax Benefit

Step 1 – Make an Eligible Donation

Donate through an accepted and traceable payment method.

Step 2 – Provide Correct Details

Enter your:

Full Name + PAN + Address + Email

exactly as required.

Step 3 – Receive Your Donation Receipt

Keep the payment confirmation and donation receipt safely.

Step 4 – Donation Reporting

The Trust reports applicable donation details to the Income Tax Department through the prescribed process.

Step 5 – Receive Form 10BE

Where applicable, the Trust issues the Form 10BE donation certificate.

Step 6 – Claim the Eligible Deduction

The donor can use the applicable donation information while filing the income-tax return, subject to the applicable rules and eligibility.

Frequently Asked Questions

Is every donation eligible for 80G deduction?

Not necessarily. Eligibility depends on the Trust’s valid 80G approval, nature of donation, payment method and other conditions under the applicable tax law.

Does 80G mean I get the donation amount back?

No. 80G generally provides a deduction from eligible income, not a direct refund of the donation amount.

Is 80G the same as 12A/12AB?

No.

12A/12AB primarily concerns the Trust’s income-tax exemption framework.

80G concerns eligible donor deductions.

Is NGO DARPAN an 80G certificate?

No. DARPAN registration and 80G approval are separate matters.

Can I claim 80G for a cash donation?

Cash donations exceeding ₹2,000 are not eligible for deduction under Section 80G.

Do I need PAN to receive the tax benefit?

Donor information, including PAN where required, is important for correct reporting of eligible donations. The Trust should collect donor information accurately for its Form 10BD reporting obligations.

What is Form 10BE?

Form 10BE is the prescribed donation certificate issued to eligible donors after the Trust reports the relevant donation details through Form 10BD.

Can I claim 80G under the new tax regime?

Generally, no. The Income Tax Department states that Chapter VI-A deductions such as 80G are not available under the new tax regime, except for specifically permitted deductions.

Important Tax Disclaimer

Tax benefits are subject to the provisions of the applicable Income-tax law, the donor’s eligibility, the Trust’s valid statutory approvals, the nature and mode of donation, applicable qualifying limits and the tax regime selected by the donor.

Nagore NNP Trust does not provide individual tax advice. Donors are advised to retain their donation documents and consult a qualified Chartered Accountant or tax professional for advice specific to their individual circumstances.

For the latest applicable rules, donors should refer to the official Income Tax Department guidance.

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