Charities & Rent Deductions — Sections 80G, 80GG, 80GGA, 80GGB & 80GGC

Charities & Rent Deductions — Sections 80G, 80GG, 80GGA, 80GGB & 80GGC

Introduction

Supporting charities, funding research or rural projects, and paying rent can all reduce your taxable income. Under Chapter VI-A, Sections 80G through 80GGC cover these deductions, helping you save tax while doing good. In this article you’ll learn:

1. Section 80G: Donations to approved funds & charities
2. Section 80GG: House rent deduction (for non-HRA recipients)
3. Section 80GGA: Donations for research & rural development
4. Section 80GGB: Company political contributions
5. Section 80GGC: Individual political contributions

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1. Section 80G: Charitable Donations

Charitable Donations (Section 80G)

1.1 Types of Donations & Deduction Rates

Category	Deduction Rate	Qualifying Limit	Cash Limit
National Defence/PM funds	100%	No limit	Max ₹2,000 cash
Other govt-approved funds	50%	No limit	Max ₹2,000 cash
Public charitable trusts	100%/50%	10% of adjusted gross income	Max ₹2,000 cash

Note: No deduction for cash donations above ₹2,000.

1.2 How to Claim

• Donation receipt: Must include donor name, PAN, fund name, donation amount and mode.
• 80G certificate: From the trust or fund.

Example:
You donate ₹1 lakh to the National Children’s Fund (100% unlimited). You claim the full ₹1 lakh under 80G.

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2. Section 80GG: House Rent Deduction

Rent Deduction (Section 80GG)

2.1 Eligibility

• Resident individual/HUF that does not receive HRA.
• Must pay rent for residential accommodation.

2.2 Deduction Formula

Deduction is the least of:

1. Rent paid minus 10% of total income
2. ₹5,000 × 12 (i.e. ₹60,000)
3. 25% of total income (excluding capital gains)

Form 10BA must be filed affirming eligibility.

2.3 Example

Mr. Sharma’s total income = ₹6 lakh; annual rent = ₹1 lakh.

• Rent − 10% TI = 1,00,000 − 60,000 = ₹40,000
• ₹5,000×12 = ₹60,000
• 25% TI = ₹1,50,000

Deduction = ₹40,000 (least of the three).

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3. Section 80GGA: Research & Rural Development Donations

Research & Rural Development (Section 80GGA)

3.1 Qualifying Donations

• Approved scientific research associations
• Rural development authorities
• Conservation funds, etc.

3.2 Deduction Rate & Limits

• 100% deduction, no upper limit
• Cash donations capped at ₹2,000
• Not available if you have business/professional income

Requirement: Certificate from the institution confirming donation.

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Political Contributions (Sections 80GGB & 80GGC)

4. Section 80GGB & 80GGC: Political Contributions

Section	Donor	Deduction Rate	Mode Requirement
80GGB	Indian company (incl. PSU)	100%	Non-cash (cheque/online)
80GGC	Individual/HUF/others	100%	Non-cash (cheque/online)

Note: Cash donations to political parties are not deductible.

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Pro Tip & Checklist

• Keep proofs (receipts, certificates, rent agreement, Form 10BA) for 6 years.
• Avoid cash: always donate by cheque, DD, net banking.
• Plan early: earmark a portion of your income for donations/rent to maximize benefit.

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Conclusion & Next Steps

Grants to charities, rural-development donations, and rent payments can meaningfully reduce your tax outgo under Sections 80G–80GGC. Use this guide, gather complete proofs, and claim the maximum allowed.

➡️ Up Next: Article 6: Business & Infrastructure Incentives under Sections 80IA to 80LA — unlock corporate deductions for start-ups, SEZ units & more.

Call to Action:

• Download our “Charity & Rent Deduction Checklist (PDF)” to keep your proofs organized.
• Comment below: Which charity or rent deduction will you claim first?