What is the maximum limit for claiming tax deduction on charitable donations?

The maximum deduction allowed under Section 80G is 10% of the donor’s total gross total income. However, for approved donees like the Prime Minister’s Relief Fund and certain university/educational institutions, 100% of the donated amount can be claimed as deduction without any limit. As per Finance Act 2025, donations to certain sports associations are also eligible for 100% deduction up to Rs. 10 lakhs. In case of excess donations, the remaining amount can be carried forward for 5 years, as ruled in the case of DIT v. Basil Healthcare Pvt. Ltd. (2018) 93 taxmann.com 56 (Bombay).