Section 133 of the Income-tax Act, 2025 allows a deduction for donations. Sums paid to funds such as the National Defence Fund, the PM National Relief Fund and PM CARES qualify for the whole of the amount, with other categories deductible at a reduced rate subject to a ceiling.
What section 133 does
Section 133 is the donations deduction — the successor to section 80G of the Income-tax Act, 1961. Its structure is unchanged: some donees qualify for the whole of the amount donated, others for a proportion, and some are subject to a qualifying amount ceiling.
Sub-section (1)(a) lists the funds for which the whole of the aggregate sum is deductible. It runs to nineteen entries and includes the National Defence Fund, the Prime Minister's National Relief Fund, PM CARES, the National Children's Fund, the National Foundation for Communal Harmony, approved Universities and educational institutions of national eminence, State funds for medical relief to the poor, the armed forces welfare funds, the National Sports Development Fund, the National Cultural Fund and the National Trust for persons with disabilities.
The conditions on a Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund are worth noting: it must be the only fund of its kind in the State or Union territory, under the overall control of the Chief Secretary or the Department of Finance, and administered as the State Government or Lieutenant Governor specifies.
The Income-tax Act, 2025 takes effect from 1 April 2026 and applies from tax year 2026-27. The Income-tax Act, 1961 continues to govern every year up to 31 March 2026, including assessments, appeals and penalties for those years, because of the repeal and savings provision in section 536. Figures quoted here are the amounts written into the Act as enacted (with the Gazette corrigenda of 3 September 2025); the annual Finance Act can change rates and thresholds.
Old Act and new Act, side by side
The table below shows what the Income-tax Act, 1961 did and where the same ground is covered in the Income-tax Act, 2025.
| Income-tax Act, 1961 | What it did | Income-tax Act, 2025 |
|---|---|---|
| 80G(1)(i) | Donations deductible in full | 133(1)(a) |
| 80G(1)(ii) | Donations deductible at a reduced rate | 133 — later clauses |
| 80G(4) | Qualifying amount ceiling | 133 — later sub-sections |
| 80G(5) | Conditions for approved institutions | Chapter XVII, sections 332 to 355 |
| 80G(5D) | Cash donations above the prescribed limit | 133 — mode of payment provisions |
| 80GGA | Donations for scientific research or rural development | 135 |
| 12A / 12AB | Registration of the donee institution | 332 |
Section 133 sub-section by sub-section
Read this alongside the bare text — each heading below is a sub-section of the section as enacted.
Sub-section (1)(a) — the funds deductible in full
The whole of the aggregate of sums paid as donations is deductible for the funds listed, which include the National Defence Fund; the Prime Minister's National Relief Fund and PM CARES; the Prime Minister's Armenia Earthquake Relief Fund; the Africa (Public Contributions-India) Fund; the National Children's Fund; the National Foundation for Communal Harmony; an approved University or educational institution of national eminence; the Gujarat earthquake relief fund; a Zila Saksharta Samiti in a qualifying district; the National or State Blood Transfusion Council; a State fund for medical relief to the poor; the Army, Naval and Air Force Central Welfare Funds; the Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996; the National Illness Assistance Fund; a qualifying Chief Minister's or Lieutenant Governor's Relief Fund; the National Sports Development Fund; the National Cultural Fund; the Fund for Technology Development and Application; and the National Trust for persons with autism, cerebral palsy, mental retardation and multiple disabilities.
The Chief Minister's Relief Fund conditions
A Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund qualifies only if all three conditions are met: it is the only fund of its kind established in that State or Union territory; it is under the overall control of the Chief Secretary or the Department of Finance; and it is administered in the manner specified by the State Government or the Lieutenant Governor.
The other categories and the ceiling
The section continues with donations deductible at a reduced proportion, and with the qualifying amount ceiling that limits certain categories by reference to gross total income. Read the remaining sub-sections before computing — the deduction for a donation to an ordinary approved institution is not the whole amount and is subject to that ceiling.
Mode of payment and documentation
The section carries the restriction on cash donations above the prescribed limit, and the requirement for the donee's approval and reporting. A donor should hold a receipt identifying the fund or institution and its approval reference, since the deduction is verified against the donee's reporting.
The donee's side of the relationship
The obligations of the institution receiving the donation are no longer in this section. They sit in the registered non-profit organisation code in Chapter XVII, sections 332 to 355 — registration under section 332, restrictions on commercial activity, books, audit, return, permitted investments, and consequences of violations including section 353.
Worked example
An individual makes the following donations in tax year 2026-27.
| Donation | Amount | Position under section 133 |
|---|---|---|
| Prime Minister's National Relief Fund | ₹2,00,000 | Whole amount deductible — sub-section (1)(a)(ii) |
| PM CARES Fund | ₹50,000 | Whole amount deductible — sub-section (1)(a)(ii) |
| National Sports Development Fund | ₹1,00,000 | Whole amount deductible — sub-section (1)(a)(xvi) |
| A State Chief Minister's Relief Fund meeting all three conditions | ₹75,000 | Whole amount deductible — sub-section (1)(a)(xv) |
| An approved local charitable trust | ₹1,50,000 | Deductible at the reduced proportion, subject to the qualifying amount ceiling |
| A donation of ₹5,000 paid in cash | ₹5,000 | Check the cash payment restriction before claiming |
The distinction in the last two rows is where most claims go wrong. Only the listed funds attract the whole-amount deduction. A donation to an ordinary approved institution is deductible at the lower proportion and is capped by reference to gross total income.
All of it is subject to section 122: the deduction cannot exceed gross total income, and the return must be filed by the section 263(1) due date with the claim made in it. And section 202 restricts most Chapter VIII deductions under the default regime.
Compliance checklist and due dates
- Identify whether the donee is in the whole-amount list in sub-section (1)(a) or in a reduced-rate category.
- For a Chief Minister's or Lieutenant Governor's Relief Fund, confirm all three conditions are met.
- Apply the qualifying amount ceiling where the category is subject to it.
- Pay by banking channel where the amount exceeds the prescribed cash limit.
- Obtain a receipt identifying the fund or institution and its approval, since the claim is matched against the donee's reporting.
- Check section 202 before claiming under the default regime.
- File by the section 263(1) due date and make the claim in the return — section 122(5).
- For donations for scientific research or rural development, the provision is section 135, not this section.
Common mistakes
- Assuming every approved institution attracts a whole-amount deduction; only the listed funds do.
- Overlooking the qualifying amount ceiling for reduced-rate categories.
- Donating in cash above the prescribed limit and losing the deduction entirely.
- Claiming a donation for scientific research under this section instead of section 135.
- Relying on a receipt without the donee's approval reference.
This is an explanatory guide, not tax advice, and it does not reproduce the section in full. Read the bare text of the section before you rely on it, and check for later amendments, the Income-tax Rules made under the new Act, and CBDT circulars and notifications.