Claiming 80G Benefits as an NRI
An interactive guide to understanding your eligibility and the process for claiming tax deductions on charitable donations in India.
The Short Answer
Yes, you can.
Non-Resident Indians (NRIs) are eligible to claim tax deductions under Section 80G. However, your eligibility depends on a few key factors. Use our checker below to see if you qualify.
Are You Eligible? Let's Check.
The 80G deduction can only be set off against income earned or received in India (e.g., salary, rental income, capital gains).
This is a critical choice that directly impacts your ability to claim this deduction.
The NRI's Step-by-Step Guide to 80G Donations
Once you've confirmed your eligibility, making a qualifying donation involves three key steps: ensuring your donation meets the rules, understanding how much you can deduct, and gathering the correct paperwork. This section breaks down each step for you.
Step 1: The Rules of Donating
Indian Institutions Only
The donation must be to a fund or institution registered in India and approved under Section 80G. Foreign charities do not qualify.
Monetary Contributions
Only donations of money (INR) are eligible. Donations in kind, like food, clothes, or services, are not deductible.
Payment Method Matters
Cash donations above ₹2,000 are not allowed. For larger amounts, use cheque, bank transfer, UPI, or other digital payment methods.
Step 2: How Much Can You Deduct?
Donations fall into different categories, affecting the percentage of your donation you can deduct. Some are limited to 10% of your Adjusted Gross Total Income (AGTI). Click below to explore examples.
Step 3: Gather the Right Documents
This is the most critical document. It must include:
- Your name and the donation amount
- Name, address, and PAN of the institution
- The institution's 80G Registration Number and its validity dates
- A valid stamp from the institution
This is a certificate of donation that the charitable institution is required to provide you. They also file this information with the Income Tax Department, which helps in pre-filling your tax return.
This form is required only if you are claiming a 100% deduction for donations to certain institutions involved in scientific research or rural development. The institution will provide this to you.
Old vs. New Tax Regime: A Critical Choice
Your choice of tax regime is the single most important factor in claiming 80G benefits. The new regime offers lower tax rates but disallows most deductions, including 80G. For an NRI, the decision requires careful comparison.
| Feature | Old Tax Regime | New Tax Regime |
|---|---|---|
| 80G Deduction | ✅ Available | ❌ Not Available |
| Other Deductions (80C, etc.) | Some are available (e.g., 80E, 80TTA) | Mostly unavailable |
| Tax Slab Rates | Standard rates (Higher) | Lower concessional rates |
| Best For... | NRIs with significant charitable donations and other investments eligible for deductions, whose total tax savings from deductions outweigh the benefit of lower slab rates. | NRIs with fewer or no eligible deductions, who benefit more directly from the lower overall tax rates and prefer a simplified filing process. |