ITR filing 2026: Claiming a Section 80G deduction? Don’t miss this new requirement

If you’ve donated to a charitable institution and plan to claim a tax deduction, your donation receipt alone may no longer be enough.

The Income Tax Return (ITR) forms for Assessment Year (AY) 2026-27 require taxpayers claiming deductions under Section 80G of the Income-tax Act to provide additional payment details, including the transaction reference number for UPI, NEFT, RTGS, IMPS or cheque payments, along with the IFSC code of the remitting bank. The new disclosure requirement is part of the notified ITR forms released by the Income Tax Department.

While the eligibility conditions for claiming a deduction under Section 80G remain unchanged, taxpayers will now have to provide a digital payment trail to support their claim.

What has changed?

Section 80G allows taxpayers to claim deductions for donations made to eligible charitable institutions, subject to the conditions and limits prescribed under the Income-tax Act.

According to the Income Tax Department‘s updated ITR validation rules, taxpayers claiming the deduction must furnish the transaction reference number for donations made through UPI, NEFT, RTGS, IMPS or cheque, along with the bank’s IFSC code. These details are mandatory for donations made through non-cash modes. The additional disclosure has been introduced across ITR forms wherever Section 80G deductions can be claimed, including ITR-1, ITR-2, ITR-3 and ITR-4.

The change is aimed at enabling electronic verification of deduction claims by linking them to banking records, rather than relying solely on the amount declared by the taxpayer.

Keep these documents ready

Before filing the return, taxpayers should keep the following documents handy:

• Donation receipt issued by the charitable institution.
• Bank statement or payment confirmation.
• Transaction reference number.
• IFSC code of the remitting bank.

According to Cleartax, taxpayers should ensure that the charitable institution is approved under Section 80G, as donations to organisations that are not eligible under the provision cannot be claimed as deductions.

Unlike salary income or tax deducted at source (TDS), charitable donations generally do not appear in the Annual Information Statement (AIS), Form 26AS or the Taxpayer Information Statement (TIS). Taxpayers should therefore reconcile their claim using the donation receipt and banking records. If the employer has already considered the donation while computing TDS, the claim should also be matched with Form 16.

Don’t leave the field blank

The Income Tax Department’s validation rules make these payment details mandatory wherever a Section 80G deduction is claimed. Missing or incorrect information could result in the return failing validation or the deduction claim being questioned during processing.

If the transaction reference number is not readily available, taxpayers should retrieve it from their bank statement, internet banking portal or UPI application instead of entering estimated details. It is also recommended to obtain a duplicate receipt from the charitable institution if required before filing the return.