80G Tax Benefits on Education Donations: A Simple Guide

When you support a student's education in India, you may also be able to save on income tax. This is commonly known as an 80G deduction. But many donors are unsure how it works, who can claim it, and what documents they need. Here is a simple, plain-language guide.

Please note: this article is general information, not tax advice. Tax rules change and depend on your personal situation, so please confirm with your tax advisor before filing.

What is 80G?

Section 80G of the Income Tax Act lets Indian taxpayers claim a deduction for donations made to approved charitable organisations. A deduction reduces your taxable income, which means you pay less tax.

India's new Income-tax Act, 2025 carries this benefit forward from tax year 2026-27 under a new section number (Section 133), but most people – and most receipts – still call it "80G". We use that name here.

Buddy4Study India Foundation, which runs Kind Circle, is registered under Sections 12A and 80G. So donations to Kind Circle scholarships can qualify, under the applicable rules.

Who can claim it?

• Individuals and families who pay income tax in India and file under the old tax regime.
• Companies and other taxpayers, subject to their own rules.

Important: if you have chosen the new tax regime, you generally cannot claim this deduction. Check which regime you are filing under before planning your giving around tax.

How much can I claim?

For most registered charities, the deduction is 50% of the donated amount, and the total deduction is limited to 10% of your adjusted gross total income. Some government funds offer higher deductions, but for typical non-profit donations, think of it this way:

If you donate ₹20,000 and fall within the limits, you can usually deduct ₹10,000 from your taxable income.

The actual tax saved depends on your tax slab.

How should I pay?

• Cash donations are eligible only up to ₹2,000. Anything above that must be paid by another mode to qualify.
• Online payments, cards, UPI, cheques and bank transfers all qualify.
• Donations in kind (books, laptops and other goods) do not qualify for the deduction.

All donations on Kind Circle are made through bank-based methods, so they meet this requirement.

What documents do I need?

1. Donation receipt – every Kind Circle donor receives an official receipt.
2. Your PAN – share it when you donate. The foundation reports donations to the Income Tax Department using your PAN.
3. Donation certificate (Form 10BE) – after the financial year ends, the foundation files a statement of donations with the tax department and issues a certificate to each donor. You need this certificate to claim the deduction.

Tip: make sure your name and PAN are entered correctly when you donate. A wrong or missing PAN can cost you the deduction.

What about NRI and international donors?

• NRIs with Indian passports who have taxable income in India may be able to claim the deduction, just like resident donors.
• Foreign citizens and OCI cardholders give through the FCRA route. These foreign contributions generally do not carry Indian 80G benefits.
• US taxpayers can get a US tax deduction by giving through Pragati Foundation USA. Read our guide for US donors.

See also: OCI cardholders and donating to India.

An example

Rahul files his taxes under the old regime. In February, he donates ₹30,000 online to a Kind Circle scholarship and shares his PAN. Because the foundation is registered for 80G and his donation is well within 10% of his income, he can usually deduct ₹15,000 from his taxable income. If he is in the 30% tax slab, that could reduce his tax by about ₹4,500, plus applicable cess. His friend Priya, who has chosen the new tax regime, donates the same amount – the student benefits just as much, but she cannot claim the deduction. (This example is illustrative and simplified.)

A quick checklist before 31 March

• Confirm whether you are filing under the old or new tax regime
• Donate by a non-cash method
• Give your correct PAN and name with the donation
• Keep your receipt
• Download or request your donation certificate before you file your return

Give for impact, not only for tax

A tax benefit is a welcome bonus, but the real return is a student who finishes school or college because you cared. On Kind Circle, every donation supports verified students, funds reach the student or institution directly, and you can see where your money went. Read where your donation goes.

Frequently asked questions

Can I claim 80G for a donation made in March?
Yes, donations made by 31 March count for that financial year, provided the other conditions are met.

I didn't share my PAN when I donated. What now?
Write to us at kind@buddy4study.com as soon as possible so we can update it before the annual filing.

Can my company claim a deduction for its CSR scholarship?
CSR spending follows separate rules. Read our guide on CSR scholarship programmes and speak with your finance team.

Start giving

Explore our circles to support a student today, or write to kind@buddy4study.com with any question about receipts and certificates.