Claiming 80G Deduction? Keep Payment Details Ready While Filing ITR

Taxpayers claiming deduction for charitable donations under Section 80G will need to be more careful while filing their income tax return for assessment year 2026-27. While the basic eligibility conditions for the deduction have not changed, the return forms now seek more payment-related details for such claims.

This means taxpayers can no longer look at the 80G schedule as a simple donation entry. The Income Tax Department is moving towards a more evidence-backed return filing system, where deductions are expected to match the supporting records available with the taxpayer.

The change is relevant for individuals using ITR-1, ITR-2, ITR-3 or ITR-4, depending on which form applies to them. Wherever a taxpayer claims a deduction under Section 80G, the required particulars must be filled in correctly.

What Has Changed For 80G Claims

The new reporting requirement may ask taxpayers to provide details such as the transaction reference number for payments made through United Payments Interface (UPI), National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) or cheque. The IFSC code of the bank from which the donation was made may also be required, according to a recent report by Financial Express.

In effect, the return form is asking for a clearer payment trail. Earlier, many taxpayers focused mainly on the donation amount and the receipt issued by the institution. Now, the filing process expects the taxpayer to show how the payment was actually made.

This is important because income tax return processing is becoming more dependent on data matching and automated checks. If the details entered in the return do not match the taxpayer’s own bank records or payment confirmation, the claim may face delay or further verification.

Taxpayers should therefore avoid filling in estimated numbers or incomplete information just to submit the return. A wrong transaction reference number, incorrect donation amount, or missing payment detail can create avoidable problems.

Documents Taxpayers Should Keep Ready

Before filing the return, taxpayers should keep the donation receipt, bank statement, payment confirmation, transaction reference number, and IFSC code ready. Taxpayers who donated through UPI or internet banking should check the payment confirmation or transaction history before entering the details in the return.

Before claiming the deduction, taxpayers must check whether the organisation is approved under Section 80G. A receipt alone is not enough, as some donations may not qualify fully or may not qualify at all.

Charitable donations usually do not appear in AIS, TIS or Form 26AS in the same manner as salary, TDS or interest income. Therefore, taxpayers need to rely mainly on their own donation receipts and banking records. If the employer has already considered the donation while computing TDS, the claim should also be cross-checked with Form 16.

Leaving a required field blank, or making a claim without proper support, may lead to processing delays, clarification requests, or disallowance of the deduction. Taxpayers should claim the deduction only where the donation is eligible, and the payment record is available for cross-checking.

FAQs

1. What has changed for Section 80G deduction claims in ITR?

Taxpayers may now need to give payment details such as transaction reference number and bank IFSC while claiming donation deduction.

2. Is a donation receipt enough to claim Section 80G deduction?

No. Taxpayers should also check whether the organisation is approved under Section 80G and keep the payment record ready.

3. What happens if the 80G details are incomplete or wrong?

Incomplete or incorrect details may lead to processing delays, clarification requests or disallowance of the deduction.