How Does the New Tax Regime in India Affect Donations and 80G Deductions? A 2025 Guide for Taxpayers.

As the 2024-25 financial year prompts taxpayers to select between the old and new tax regimes, a crucial consideration for many is the impact on charitable donations. For those who believe in giving back, understanding how tax laws affect your contributions is key. This guide explains how the new tax regime in India affects donations, particularly deductions under Section 80G, and how you can continue to support causes you care about, like the initiatives at DEEP Trust, while gaining tax benefits.

Can I Claim 80G in the New Tax Regime?

A common question among donors is, “Can I claim 80G in the new tax regime?” The answer is no. The new tax regime, which has been made the default option, offers lower tax rates in exchange for forgoing most of the deductions and exemptions available under the old system. This includes the popular deduction for charitable donations under Section 80G.

This means that while your desire to contribute to society remains invaluable, any donation you make will not reduce your taxable income if you file your returns under the new tax structure. To receive a tax benefit for your generosity, you must consciously opt for the old tax regime.

80G Exemption in Old vs. New Tax Regime

The choice between the two regimes presents a clear trade-off for philanthropists. The “donation tax exemption under the new income tax regime” is non-existent, making the old regime the only path for tax-savvy donors.

Here’s a comparative look to help you decide:

Feature	Old Tax Regime	New Tax Regime (FY 2024-25)
Section 80G Deduction	Allowed. You can claim deductions for donations to eligible NGOs like DEEP Trust.	Not allowed. No tax benefit for charitable donations.
Tax Rates	Higher tax rates with multiple slabs.	Lower, simplified tax rates.
Other Deductions	Most deductions are available (Sec 80C, 80D, HRA, etc.).	Major deductions are eliminated.
Ideal For	Taxpayers who make significant investments and expenditures that qualify for deductions, including charitable donations.	Taxpayers who prefer simplicity and have fewer deductions to claim.

For individuals who make regular and substantial donations, the cumulative tax savings from deductions under the old regime can often outweigh the benefits of the lower tax rates in the new regime.

How to Save Tax on Donations in India by Supporting DEEP Trust

By choosing the old tax regime, you can ensure your support for an NGO in Hyderabad, India like DEEP Trust also translates into tax savings for you. Donations made to DEEP Trust are tax-exempt under Section 80G of the Income Tax Act.

Follow these steps to claim your donation tax benefit:

1. Opt for the Old Tax Regime: When filing your taxes, explicitly choose to be taxed under the old regime.
2. Make Your Donation: You can support DEEP Trust’s work in education, healthcare, and environmental projects through various channels. Cash donations are only deductible up to ₹2,000, so it is advisable to use digital transfers, cheques, or demand drafts.
3. Secure the Essential Documents: Upon donating, DEEP Trust will provide a stamped receipt and a Form 10BE certificate. This certificate is mandatory and will contain details such as the trust’s name, PAN, registration number, and the donation amount.
4. File Your Income Tax Return (ITR): In your ITR form, fill out ‘Schedule 80G’. Here, you will need to provide the details mentioned in your donation certificate. The amount will then be deducted from your gross total income as per the applicable limits (typically 50% of the donated amount, subject to a cap of 10% of your Adjusted Gross Total Income).

Your Contribution Creates Lasting Impact

Choosing to donate to DEEP Trust under the old tax regime does more than just provide a tax benefit; it fuels meaningful change. Your support helps us provide underprivileged children with educational opportunities, run mobile health screenings for vulnerable communities, and promote environmental sustainability.

By making a conscious choice this tax season, you can continue to be a pillar of support for those in need while making your generosity count on your tax return. If you have any questions about the donation process or require documentation for tax purposes, please contact us at donation@deepindia.org.