Kotak Life

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Section 80G of Income Tax Act

Section 80G of Income Tax Act
  • 28th Nov 2019 |
  • 4,505

At some point during your life, you may have contributed to charity with the noble intention of giving back something to the society. The government supports such charitable services and allows benefits under section 80G of the Income Tax Act, 1961.

This section allows income tax deductions for donations made to certain charities and relief funds. However, deductions must be only to charities that qualify for such benefits.

What is section 80G?

What is section 80G is a very common question. This section relates to charitable donations and aims to offer tax benefits for philanthropic acts. Tax deductions are offered to assessees for donations made to qualifying charities and relief funds. The donated amount may be claimed as a deduction at the time of filing income tax returns (ITRs).

Who is eligible for claiming section 80G deductions?

Every taxpayer including individuals, Hindu Undivided Families (HUFs), and companies may donate to eligible charities and claim deductions under section 80G. However, deductions are available within the defined limits set by the government authorities.

Donations permitted under section 80G

Any taxpayer who wants to claim deduction under this section needs to ensure that the donations are made to organizations are within the purview of the Act. Only donations made to registered charities and funds qualify for the 80G deduction. Any charity or trust that wants to qualify must register under section 12A. It is critical that the taxpayers check the credentials of the charitable organization prior to donating.

Exemptions under section 80G

All donations do not qualify for these benefits and taxpayers must check the 80G exemption list before proceeding with donations. Donations made to foreign charitable trusts are not eligible for the benefits. Similarly, any donation given to political parties does not qualify for tax benefits under this section.

Deduction under section 80G

Even donations that are eligible for the benefits of 80G of the Income Tax Act must adhere to some conditions. Donations under this section are broadly classified under the following four categories:

1. 100% deductions

Donations under this category are eligible for 100% benefits and are not subject to any qualifying limitations. Money donated to National or State Blood Transfusion Council, National Defence Fund, The National Foundation for Communal Harmony, and the Prime Minister’s National Relief Fund qualify for deductions without any limits.

2. 50% deductions

If donations are made to organizations, such as Indira Gandhi Memorial Fund, Prime Minister’s Drought Relief Fund, and the National Children’s Fund, 50% of the amount is eligible for availing the tax benefits.

3. 100% deduction subject to 10% of the adjusted gross total income

Money donated to the Indian Olympic Association or government or local bodies promoting family planning is eligible for deductions under this category. Only 10% of the total adjusted gross income may be claimed for tax deductions. Any amount exceeding this limit is rounded off to 10% of the gross income.

4. 50% deduction subject to 10% of the adjusted gross total income

Donations given to the government or local authorities that are used for charitable purposes are eligible for deductions under this category.However, only 10% of the total adjusted gross income qualifies for the tax benefits as the maximum cap.

Term Insurance Quote

Adjusted gross total income

To determine the adjusted gross total income, first, add all incomes received under various headings. The following amounts must then be deducted from this total:

  • Deductions under sections 80CCC to 80U excluding 80G
  • Long-term capital gains
  • Any exempt income
  • Earnings under sections 115A, 115AB, 115AC, 115AD, and 115D related to international companies and non-residents

Scope of deduction

Any donation that is claimed towards 80G benefit must adhere to certain criteria. Five of these are listed below:

1. The amount should be paid from taxable or exempt income; donations made through non-taxable income do not qualify for the benefits

2. All donations made to international organizations and political parties are exempt from the benefits

3. Donations made either in check or in cash (up to INR 2,000) are eligible for exemption; material donations like food, clothes, and medicines do not qualify for the benefits

4. Donations given only to registered and valid trusts are eligible for benefits under section 80G

5. Only corporate assessees may claim tax benefits for donations made to the Indian Olympic Association

Documents needed to claim section 80G benefits

All taxpayers who want to claim tax exemption under this section need to provide the following documents:

1. Duly stamped receipt

A duly signed and stamped receipt from the trust or organization that receives the donation must be provided. The receipt must have all information,such as name, address, and Permanent Account Number (PAN) of the trust; name of the donor; and the donation amount.

2. Form 58

This is required if the taxpayer wants to claim a 100% deduction for eligible donations as defined in the aforementioned paragraphs.

3. Trust’s Registration Number

The Income Tax Department issues a registration number to every eligible and qualifying trust. The donation receipt must include this registration number, which must also be valid on the date to ensure that the benefits under Section 80G may be claimed at the time of filing the ITR.

Every income entails a tax liability and taxpayers often want to find ways to reduce their tax outgoing. Section 80G is beneficial in reducing the tax liability of the assessees and it is recommended that every taxpayer takes advantage of the same.

Read Here for More Related Articles:

Kotak e-Term Plan


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Comparing Term Plans – What Should You Look Out For

What is Insurance Premium - A Detailed Guide

Insuring Against Disability With Disability Insurance Rider

5 Things To Consider While Buying Term Insurance Plan

Does Term Insurance Cover Accidental Death?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

How to Compare Term Insurance Online

9 Most Frequently Asked Questions on Term Insurance

5 Benefits of Early Retirement Planning

Can I Make Changes to My Term Insurance Policy Post Purchase?

What Happens if you Hide Facts in your Term Insurance?

How To Choose the Right Term Insurance Plan?

Can I Buy Term Insurance for a COVID-19 Patient?

Which Death Type Does Your Term Plan Not Cover?

How Does A Term Life Insurance Work in India?

While Buying Term Insurance Compare Features, Not Just Premiums

4 Methods to Calculate How Much Term Insurance You Need

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Why Married People Should Buy Term Insurance Under MWP Act?

Insuring Protection Against Death With Death Insurance Rider

Term Plan with Spouse Cover

What is Term Insurance - A Complete Guide

Is It Good To Buy A Term Insurance Plan In 2022?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Term Insurance Age Limit – Term Plan for All Age Groups

Tips to Choose the Right Term Period for Term Insurance Plan

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Is a Term Insurance Policy Portable?

6 Reasons That Make Term Insurance a Must Buy

What Types of Deaths Are Covered in a Term Insurance Plan?

Why Term Plan Should Be The First Step To Securing Your Future?

Understanding Term Insurance Riders

Protection for your family

What Is a Renewable Term Insurance Policy?

6 Types of Death not covered in Term Insurance Plan

4 Reasons Why You Need Critical Illness Cover

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Cost of Term Insurance Likely to Increase Soon

Is There Any Tax Benefit on Term Insurance?

Do Beneficiaries Pay Taxes on Term Insurance?

Busting Myths and Facts About Term Insurance Policies

8 Factors to consider before choosing a Critical Illness Insurance

How Does Term Life Insurance Work? Learn the Benefits

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Do You Need Term Insurance Cover After Retirement?

Term Plans are Definitely Cheaper than You Think!

Best Investment Plans for Children - Secure Your Child's Future

9 Ways to Help Family Members in Financial Trouble

Different Types of Premium in Term Insurance

What Are Insurance Riders and How to Choose Them in a Term Plan?

Why Term Insurance Is Important in times of COVID-19?

Term Insurance Basics You Should Know

Can You Increase Your Term Insurance Cover?

Why Should You Not Take A Term Plan Without Medical Test in India?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

How Much Term Life Insurance Cover Do I Need in India?

Why does every working woman need life insurance?

Is term Insurance Needed for People With No Dependents?

How to Identify Term Insurance According to Your Needs?

Planning For Son or Daughter's Wedding

What are the Documents Required for Term Insurance Plan?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Term Insurance – Why You Must Include In Your Financial Planning?

Advantages of Buying Term Insurance in Your 50s

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Make Your Online Term Plan Your Familys Monthly Payout

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Difference between Term Insurance and Life Insurance

Planning For Children's Future

Top 3 Reasons Why You Should Buy A Term Plan Now

Why Should New Parents Buy Term Life Insurance?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Term Insurance: What Happens When You Don’t Pay Your Premiums?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Why Term Insurance Is Better Than ULIP?

How Not To Get Your Term Insurance Claim Rejected

Make Your Online Term Plan Your Family's Monthly Pay Cheque

How to Surrender Term Life Insurance When you have No Liabilities

What Should You opt for - Limited or Premium Pay?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

4 Things To Expect From Your Term Insurance Plan in India

Why Should You Buy Term Insurance in 2022?

All you need to Know about Term Insurance Plans for Housewives

Reasons You Need Term Insurance Plan as a Self-Employed Person

Individual Life Insurance vs. Group Term Life Insurance

How To Change The Nominee in Term Insurance?

8 Things To Do After Buying Term Insurance

Know How to Invest at Every Age for Larger Returns

Can I Get Term Insurance on Behalf of My Spouse?

Why is it important to buy term insurance plan?

Gift Your Father A Term Insurance Plan This Father's Day

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Is Group Term Life Insurance Provided By Employer Sufficient?

Term Insurance With Riders In India

Term Insurance: Smokers vs Non-Smokers

Why should single women purchase term life insurance?

Advantages & Disadvantages of Term Insurance in India

What is a short term insurance policy?

What Should Be The Duration Of Your Term Plan in India?

Can Term Insurance Plans Be Purchased As A Gift?

Is Term Life Insurance Plan an Investment or Expense?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Insuring yourself against Ill Health with a Critical Illness Rider

What All Documents Required For Term Insurance In India?

8 Benefits of Term Insurance You Should Know

How To Calculate The Amount Of Term Life Insurance You Need?

Why Premium Amount for Term Insurance is So Low?

Is Life Insurance Investment Worthy Enough

Insuring Against Accidents with an Accidental Death Insurance Rider

How To Choose the Right Sum Assured Under a Term Plan?

Is ₹1 Crore Term Insurance Good Enough Cover?

Why Buy Term Insurance Plan With a High Cover?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Do I Need to Give a Medical Test for Term Insurance in India?

Term Insurance with Critical Illness

Why Should You Add a Rider to a Term Insurance Plan?

5 Reasons to Buy Term Insurance When You are in Your 30s

Can Senior Citizens Avail Term Insurance?

Should You Buy a Term Plan After 40?

Term Insurance Calculator - Everythng You Need To Know

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Ensure Protection Against Death, Disease & Disability With Life Insurance

10-Year Term Life Insurance Policy - Explained in Detail

Does Your Term Insurance Plan Cover Death Due to COVID-19?

What Are the Best Term Insurance Plans for Planning Retirement?

How Much Term Insurance Do I Need

Eligibility Criteria for Buying Term Insurance in India

What Is the Correct Age to Buy Term Insurance?

Tax Benefits of Term Insurance in India

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

How Much Cover Should I Take In A Term Plan?

Can I Extend the Tenure of My Term Insurance Plan?

Choosing Riders for Insurance Plans

Should You Have Multiple Term Life Insurance Policies?

What is Critical Illness Policy

Why 1 Cr Term Plan Is Necessary For Family?

Calculating Term Insurance Premium

Everything About Claim Settlement Ratio for Term Insurance

5 Term Insurance Benefits for Single Women

Term Life Insurance Plan for Smokers vs Non-Smokers

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Different Types of Protection Plans

Term Insurance Plans and Policies for Smokers

Importance of Term Insurance at Every Stage of Your Life

Steps on How to Buy Term Insurance Online

Endowment Plans vs Term Plans: Understanding the difference

Why Buy Term Insurance Even at Rising Rates?

All About Term Insurance Inbuilt Coverage

Insurance Policy for Housewife In India

Increasing Term Insurance and Riders

Buying A Term Insurance Plan? Take These Factors into Account

What are incremental term insurance plans?