How to Claim Tax Benefits for Donations Made by NRIs in India
Sushrut Phadke
Founder's Office
Mar 7, 2026
Taxation
NRIs' charitable donations in India cover four main areas: education, health care, relief work, and social welfare. Under Indian tax law, NRI donations qualify for tax benefits.
The benefit helps the NRI reduce their taxable income in India and allows the NRI to assist with charitable causes through the support of designated NRI charities. Tax deductions are available for such NRI donations. A proper filing of a tax return allows an NRI to reduce the NRI's total income tax liability per the Indian Income Tax Act.
This article describes NRI donation tax benefits, how the 80G tax benefit works, what documents you'll need to provide with your application for 80G, and what mistakes most non-resident Indians make when claiming these benefits.
What are NRI Donation Tax Benefits Under Section 80G?
The Indian Income Tax Act, section 80G, provides tax concessions on any donations to a given charity and relief funds. NRIs can claim the deductions as per Section 80G for their taxable income in India.
The deductions of Section 80G can be obtained only under the old tax regime. NRIs who choose the new tax regime are not allowed to claim such a deduction.
The exemption is limited to gifts to the Indian charities or funds registered under Section 80G. In India, donations to foreign charities are not eligible for tax deduction.
Eligible Donations for NRI Tax Benefit
Tax deductions do not apply to every donation. Section 80G categorises donations which are eligible into certain groups. The deduction should also require the registration of Section 80G. NRIs can claim tax deductions for the following donations:
Donations made to any of the Notification Fund(s), such as the National Defence Fund or the PM National Relief Fund, can receive a tax deduction of up to 100%.
Donations made to most registered NGOs / Charitable Trusts, etc., can receive a tax deduction of 50%.
Although some categories of donations are deemed eligible for a qualified limit, and others have no such limit, the eligibility is determined by the type of institution receiving the donation.
Donations made via cash, cheques, bank transfers or demand drafts are acceptable.
Cash donations exceeding ₹2,000 will not be eligible for tax deductions.
Goods and services that are given as donations cannot be deducted.
In case the donation is being made outside of India, the approval of the receiving organisation should be obtained under the Foreign Contribution Regulation Act (FCRA).
Categories and Limits of NRI Donation Tax Benefits
There is a tax deduction on charity donations to NRIs, depending on the nature of the charity and whether it is registered or not.
With certain funds, it is possible to deduct 100% without any limit. They are typically relief funds that are announced by the government.
The other donations are subject to a 50% deduction with or without a qualifying limit.
In case of a qualifying limit, a deduction is limited to 10% of the Adjusted Gross Total Income (AGTI). AGTI is calculated following deductions made after sharing some deductions, but before Section 80G.
On claiming the deduction, NRIs should ensure that the type of donee is confirmed. Wrongful classification will, in most cases, be rejected or adjusted in the course of tax processing.
Documentation for Tax Deduction on Charity Donation NRI
Section 80G deduction cannot be claimed without proper documentation of the same. NRIs should receive a valid receipt of donation from the charity.
The receipt must have:-
The name of the donor
The amount of the donation
The date and the method of payment.
The receipt also should not fail to indicate the registration number of Section 80G and the PAN of the donee organisation.
Evidence of payment is obligatory. This can be bank statements, UPI transactions references or cheques.
The deduction must be claimed with the help of the PAN of the NRI donor. In case the donation is done outside the country, records of sending the money using credible banking facilities must be submitted. Denial of the deduction may occur due to incomplete or incorrect receipts.
How NRIs Claim 80G Deduction for Donations
Follow these steps to ensure your donation is eligible and correctly claimed for tax deduction:
Check that the NGO or Fund is an Indian NGO or Fund. Find this information on their website or ask them. It's probably run a charity in another country as long as it meets certain standards, so make sure they have FCRA(Foreign Contribution Regulation Act).
If the donation is made from outside India, make sure the organisation has received its Foreign Contribution Regulatory Act (FCRA) approval before donating.
Make the donation using an accepted payment method (i.e. bank transfer, cheque, & demand draft).
Get your Donation Receipts with all of the required details.
Store your proof of payment and remittance records safely.
When you are filling out your income tax return, select the old tax regime and complete the donation details under Section 80G.
Retain all of your documentation if it is necessary for tax authority verification.
Common Mistakes to Avoid
Avoid the following mistakes while donating to charities and claiming tax deductions:
Not eligible for tax deduction to donate to organisations that do not have registration under Section 80G.
Cash donations exceeding ₹2,000 render the deduction ineligible.
When the money is sent overseas, disregarding FCRA approval may nullify the eligibility for tax deduction.
Rejection can take place as a result of not gathering the correct receipts or PAN.
It is not allowed to claim deductions under the new tax regime.
Conclusion
Under Section 80G of the Income Tax Act, NRIs can claim tax benefits on the eligible donations made in India. These advantages not only decrease the taxable income but also promote true charitable activities.
The deductions claimed by an NRI for the donations made to charity can be successfully claimed if they are qualified for deduction by the applicable tax provisions. NRIs must use appropriate payment methods and maintain accurate documents. It is also important to select the right tax regime and have knowledge about the limits of deduction.
Looking for simplified taxation for NRIs? Explore the NRI services offered by Rupeeflo.
FAQs
Are NRIs entitled to claim tax deduction on their Indian donations?
Yes., Under Section 80G of the Indian Income Tax Act, NRIs are entitled to tax deductions on eligible donations to an Indian charitable institution or fund eligible to receive such a donation.
What are the donations which can be considered NRI donation tax benefits in India?
Only monetary donations made to organisations registered under Section 80G are eligible. Contributions that exceed ₹2,000 in value in cash are not eligible.
To what extent are NRIs allowed to deduct the donations to charity?
The deduction may be 100% or 50% of the amount donated based on the type of charity.
How do NRIs claim 80G deduction?
Non-Resident Indians can claim the 80G deduction available when they donate to a registered charity under Section 80G using an eligible mode of payment. In order to claim the deduction, they must have a valid receipt and must report the donation while filing their Income Tax Return under the old tax regime.
