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Knowledge Bank / Income-tax Act, 2025 / Chapter VIII - Deductions to be Made in Computing Total Income

Section 133

Section 133: deduction for donations to certain funds and charitable institutions

Section 133 is the Income-tax Act, 2025's version of the deduction long known as "80G" - a deduction for donations made to a specified list of government funds and approved charitable institutions. Depending on which fund or institution the donation goes to, either 100% or 50% of the amount qualifies, and some categories are further capped as a percentage of income.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

The two donation categories

Section 133(1)(a) lists funds where the entire donation qualifies for deduction with no percentage cap - these are specific government and national relief funds named in the section, such as the National Defence Fund, the Prime Minister's National Relief Fund / PM CARES Fund, the National Children's Fund, State Blood Transfusion Councils, and several other named national funds.

Section 133(1)(b) covers a second category where only 50% of the donation qualifies - this includes the Prime Minister's Drought Relief Fund, donations to the Government or a local authority for a charitable purpose, and donations to any registered non-profit fund or institution approved under Section 354 and listed in Schedule VII of the Act.

The 10%-of-income cap on some donations

For the categories under Section 133(1)(b) (and two specific items under (1)(a) relating to family planning and the Indian Olympic Association), the amount eligible for deduction is capped at 10% of the donor's "adjusted gross total income." Any donation above that 10% threshold, within these categories, is simply not counted - it does not carry forward.

Donations to the fully-100%, no-cap national funds under most of Section 133(1)(a) are not subject to this 10% ceiling.

Conditions that apply to every donation under this section

  • Only donations made as a sum of money qualify - donations in kind (goods, property, services) are not deductible under this section.
  • Any donation exceeding ₹2,000 must be paid by a mode other than cash to qualify; cash donations above ₹2,000 get no deduction.
  • A sum that has been allowed as a deduction under Section 133 cannot also be claimed under any other provision of the Act.
  • For donations to a registered non-profit fund or institution under Section 133(1)(b)(ii), the claim is only allowed based on the donation information that institution itself reports to the tax authorities - so the receiving institution's own compliance matters for the donor's claim to go through.

Frequently asked questions

Is Section 133 the same as the deduction people call "80G"?

It serves the same purpose - a deduction for donations to government funds and approved charities - but is renumbered as Section 133 under the Income-tax Act, 2025, with its own list of qualifying funds in the section text and Schedule VII.

Do all donations get a 100% deduction?

No. Some specifically named national funds (e.g. PM CARES Fund, National Defence Fund) qualify for a 100% deduction with no income-based cap. Donations to most other approved charitable institutions and to government/local authority funds qualify for only 50%, and are further capped at 10% of adjusted gross total income.

Can I claim a deduction for a ₹5,000 cash donation?

No - any donation above ₹2,000 must be made through a non-cash mode (bank transfer, cheque, card, etc.) to qualify for deduction under this section.

Can I deduct the value of goods I donated to a charity?

No - Section 133 only allows a deduction for donations made as a sum of money, not for donations of goods, property or services.

Related sections

  • Section 134 - deduction for rent paid when you don't get HRA
  • Section 135 - deduction for donations to scientific research

Want this applied to your actual filing, not just explained?

Get your Section 133 donation deductions verified with our tax team

Last updated 9 September 2026

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