NGO Tax Bills Triple: Is Your 80G Deduction Safe?

Tax paid by NGOs, religious trusts, and universities under ITR-7 nearly tripled in five years. If you donate to these bodies for 80G deductions, tighter tax rules on trusts could shrink the benefits you expect at filing time.

Here's what happened: Total income tax paid by ITR-7 filers — including NGOs, charitable trusts, universities, and research institutions — rose from ₹356 crore in AY 2021-22 to ₹1,043 crore in AY 2025-26.. Stricter compliance requirements introduced since 2022 — including mandatory re-registration under Section 12AB and tighter rules on how trusts must 'apply' their income — have eroded tax exemptions for many entities.. When a trust or NGO loses its tax-exempt status due to non-compliance, it is taxed at the maximum marginal rate, and donors lose their 80G deduction for contributions made to that organisation..

What you should do: Verify the 80G registration status of any NGO or trust you donate to using the 'Tax Exempt Institution Search' tool on the Income Tax e-filing portal at incometax.gov.in before transferring money.. Collect a stamped receipt with the trust's valid PAN and 80G registration number immediately after donating — without this, your deduction claim will be rejected during ITR processing.. Check your AY 2025-26 ITR draft to confirm your 80G deductions are populated correctly in Schedule 80G — mismatches with the trust's filing can trigger a defective return notice..

Pro tip: 80G deductions for donations to most funds are capped at 10% of your adjusted gross total income — even a valid receipt won't save you if you've already crossed that ceiling for the year.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.