Claiming Donation Deductions in ITR? Here’s What Changes in AY 2026–27

Taxpayers claiming deductions on donations will need to provide additional information while filing income tax returns for the assessment year 2026–27. The latest ITR forms introduce expanded disclosure requirements under Schedule 80G.

These changes are intended to improve transparency and verification of donation-related tax claims. The updated framework applies to deductions claimed under the Income Tax Act, 1961.

Updated Disclosure Requirements in Schedule 80G

The revised ITR forms have introduced new mandatory fields under Schedule 80G, which covers deductions for donations to specified funds and charitable institutions. Taxpayers are now required to report the transaction reference number for payments made through UPI or banking channels such as cheque, IMPS, NEFT, and RTGS.

In addition, the Indian Financial System Code of the bank through which the donation was routed must be disclosed. These requirements are in addition to existing fields such as the name, PAN, and complete address of the organisation.

Objective Behind the Reporting Expansion

The expanded reporting framework aims to enhance the traceability of donations claimed for tax benefits. By capturing transaction-level payment data, tax authorities will be able to verify that donations were made through identifiable financial channels.

This step is intended to reduce mismatches between claims and supporting records. It also limits the scope for incorrect or unsupported deduction claims under Section 80G.

Impact on Taxpayers Claiming Deductions

With the revised ITR forms, taxpayers will need to retain detailed payment records for all donations they intend to claim. This includes maintaining proof of electronic transfer references and bank details for eligible contributions.

The requirement applies uniformly across donations made to approved charitable institutions and specified relief funds. Failure to furnish accurate transaction details could affect the acceptance of deduction claims during processing or assessment.

Changes Related to Political Donations

The updated ITR forms also seek more granular disclosures for donations made to political parties. These contributions are eligible for deduction under Section 80GGC, subject to prescribed conditions.

Donations must be made through banking channels, including digital modes, to qualify for deductions under the old tax regime. While there is no specific monetary cap on deductions claimed under Section 80GGC, the total deduction cannot exceed the taxpayer’s gross total income.

Read More: From Income Tax Act 2025 to STT Hike.

Conclusion

The revised ITR forms for AY 2026–27 mark a clear shift towards more detailed reporting of donation-related deductions. By mandating transaction reference numbers and IFSC details, the framework strengthens verification and audit trails.

Taxpayers seeking deductions under Sections 80G and 80GGC will need to ensure accurate record-keeping and disclosures. The changes reinforce compliance while maintaining eligibility for legitimate donation claims.

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