ITR Filing 2026: Additional Proof Needed for Claiming Donation Exemptions

The Income Tax Authorities have introduced significant changes to the ITR forms. Taxpayers claiming deductions on donations may now be required to furnish more details in their income tax returns (ITRs) for the Assessment Year 2026-27, due to the changes made in section 80G of the Income Tax Act 1961, which relates to the deduction available on donations made to eligible funds, charitable institutions, and relief organisations. The key objective behind this move is to ensure better investigation and tracking of claims related to donations.

What changes have been made?

Under the revised ITR form, taxpayers have to provide the additional details:

• Transaction reference number of payments made through UPI or banking channels such as checks, IMPS, NEFT, and RTGS
• IFSC (Indian Financial System Code) of the bank through which the donation is made.

This information is to be provided in addition to the details already required, such as:

• Name of the organisation receiving the donation
• PAN (Permanent Account Number)
• Full address of the organisation
• Key information on the nature of donations, applicable limits, and percentage of deductions.

The new reporting system aims to ensure that donation claims are genuine and that the number of fake or unverified claims is reduced. 

Impact on Taxpayers

Now, taxpayers who want to avail themselves of deductions on donations will have to keep all the payment-related documents safe. It has been made compulsory to provide these aforementioned details while claiming deductions on contributions made to eligible charitable institutions or specified funds under section 80G.

Donations to Political Parties

The revised ITR form also seeks more detailed information for donations made to political parties under section 80GGC. Contributions made through a banking medium or digital payment will remain eligible for deduction under the old tax system. Although there is no fixed limit on deductions under section 80GGC, the amount claimed cannot exceed the total income of the taxpayer.