Applicable to: All taxpayers (Individuals, HUFs, Firms, etc.)
This section provides 100% deduction for donations made to approved scientific research, rural development, and social welfare programs, even if you don’t itemize deductions.
Key Features (AY 2025-26)
1. Eligible Donations
| CATEGORY | ELIGIBLE DONEES | DEDUCTION |
| Scientific Research | Approved institutions (ICAR, CSIR, etc.) | 100% of donation |
| Rural Development | NGOs/Trusts approved under Section 35CCA | 100% of donation |
| Afforestation | Government-approved programs | 100% of donation |
2. Conditions
✅ No 10% AGI limit (unlike Section 80G)
✅ Cash donations ≤ ₹2,000 (higher amounts must be via cheque/online)
✅ Donee must have valid approval (e.g., 35CCA/35CCB certification)
3. Documents Required
- Donation receipt with approval number
- Payment proof (for donations > ₹2,000)
Comparison with Section 80G
| PARAMETER | SECTION 80GGA | SECTION 80G |
| Purpose | Scientific/Rural projects | General charities |
| Deduction | 100% (always) | 50% or 100% |
| Income Limit | No 10% AGI cap | 10% AGI cap for some funds |
| Cash Donation | Allowed up to ₹2,000 | Same |
Who Should Use This?
- Researchersfunding academic projects
- Corporatessupporting rural NGOs
- High-income donorsavoiding 80G’s 10% limit
Example: Donating ₹5 lakh to an approved rural health NGO → Full ₹5 lakh deductible
