Donations can lower your tax bill when made to eligible institutions and paid through proper banking channels.
Donations to NGOs and charities (Section 80G)
Deduction of 50% or 100% of the donation, with or without a qualifying limit, depending on the institution. Always collect a receipt that shows the institution's 80G registration details.
Donations to political parties (Section 80GGC)
Contributions by individuals to registered political parties are deductible, but not if paid in cash.
Important
These deductions are available under the old tax regime. Check which regime suits you before you claim.