Income Tax Act 2025: Section 133 for Tax Year 2026-27

Deduction in respect of donations to certain funds, charitable institutions, etc.

[Section-133 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 133(1) of Income Tax Act 2025

133(1) In computing the total income of an assessee, there shall be deducted, as per and subject to the provisions of this section,—

• 133(1)(a) the whole of the aggregate of the sum or the sums paid by the assessee, in the tax year as donations to––
  • (i) the National Defence Fund set up by the Central Government; or
  • (ii) the Prime Minister’s National Relief Fund or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND); or
  • (iii) the Prime Minister’s Armenia Earthquake Relief Fund; or
  • (iv) the Africa (Public Contributions-India) Fund; or
  • (v) the National Children’s Fund; or
  • (vi) the National Foundation for Communal Harmony; or
  • (vii) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or
  • (viii) any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat; or
  • (ix) any Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for improving primary education in villages and towns (having a population up to one lakh) according to the last published census of which figures are available before the first day of the relevant tax year), in such district and for literacy and post-literacy activities; or
  • (x) the National Blood Transfusion Council or any State Blood Transfusion Council, which has its sole object the control, supervision, regulation or encouragement in India of the services related to operation and requirements of blood banks; or
  • (xi) any fund set up by a State Government to provide medical relief to the poor; or
  • (xii) the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants; or
  • (xiii) the Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996; or
  • (xiv) the National Illness Assistance Fund; or
  • (xv) the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund, if the fund meets all the following conditions:––
    • (A) it is the only fund of its kind established in the State or the Union territory;
    • (B) it is under the overall control of the Chief Secretary or the Department of Finance of the respective State or the Union territory;
    • (C) it is administered in a manner specified by the State Government or the Lieutenant Governor; or
  • (xvi) the National Sports Development Fund to be set up by the Central Government; or
  • (xvii) the National Cultural Fund set up by the Central Government; or
  • (xviii) the Fund for Technology Development and Application set up by the Central Government; or
  • (xix) the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under section 3(1) of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999; or
  • (xx) the Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under section 135(5) of the Companies Act, 2013; or
  • (xxi) the Clean Ganga Fund, set up by the Central Government, where such assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under section 135(5) of the Companies Act, 2013; or
  • (xxii) the National Fund for Control of Drug Abuse constituted under section 7A of the Narcotic Drugs and Psychotropic Substances Act, 1985; or
  • (xxiii) the Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning; or
  • (xxiv) the Indian Olympic Association or any other association or institution established in India, as the Central Government may, having regard to the prescribed guidelines, by notification specify in this behalf for—
    • (A) the development of infrastructure for sports and games in India; or
    • (B) the sponsorship of sports and games in India,
• and where the assessee is a company;
• 133(1)(b) an amount equal to 50% of the aggregate of the sums paid as donation by an assessee during the tax year to––
  • (i) the Prime Minister’s Drought Relief Fund;
  • (ii) any fund or any institution to which this section applies, if:—
    • (A) it is established in India for a charitable purpose; and
    • (B) it is a registered non-profit organisation or an institution or fund mentioned in Schedule VII (Table: Sl. No. 1) and approved under section 354;
  • (iii) the Government or any local authority, to be utilised for any charitable purpose other than the purpose of promoting family planning;
  • (iv) an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;
  • (v) a corporation established by the Central Government or any State Government for promoting the interests of the members of a minority community;
  • (vi) for the purposes of sub-clause (v), “minority community” means a community notified as such by the Central Government;
  • (vii) any entity, for the renovation or repair of any temple, mosque, gurudwara, church or other place which is notified by the Central Government to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States.

Section 133(2) of Income Tax Act 2025

133(2) Where the aggregate of the sums referred to in sub-section (1)(a)(xxiii) and (xxiv), sub-section (1)(b)(ii) to (v) and (vii) exceeds 10% of the adjusted gross total income, then the amount in excess of 10% of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1).

Section 133(3) of Income Tax Act 2025

133(3) Where deduction under this section is claimed and allowed for any tax year in respect of any sum specified in sub-section (1), the sum in respect of which deduction is so allowed shall not qualify for deduction under any other provision of this Act for the same or any other tax year.

Section 133(4) of Income Tax Act 2025

133(4) The deduction under this section shall be allowed only for donation made as a sum of money.

Section 133(5) of Income Tax Act 2025

133(5) Any deduction for a donation over two thousand rupees shall be allowed only if the payment is made by a mode other than cash.

Section 133(6) of Income Tax Act 2025

133(6) Any claim of deduction by the assessee in his return of income filed for any tax year in case of a donation made to an institution or fund referred in sub-section (1)(b)(ii), shall be allowed only on the basis of––

• (a) the information relating to such donation furnished by such institution or fund to the prescribed authority or person authorised by such authority; and
• (b) subject to verification as per the risk management strategy formulated by the Board from time to time.

Section 133(7) of Income Tax Act 2025

133(7) For the purposes of this section,––

• (a) “adjusted gross total income” means gross total income as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter;
• (b) “charitable purpose” does not include any purpose the whole or substantially the whole of which is of a religious nature;
• (c) “National Blood Transfusion Council” means a society registered under the Societies Registration Act, 1860 and has an officer of the rank of an Additional Secretary to the Government of India or higher to deal with the AIDS Control Project as its Chairman;
• (d) “State Blood Transfusion Council” means a society registered, in consultation with the National Blood Transfusion Council, under the Societies Registration Act, 1860 or under any law corresponding to that Act in force in any part of India and has a Secretary to the Government of that State dealing with the Department of Health, as its Chairman; and
• (e) an association or institution having as its object the control, supervision, regulation or encouragement in India of such games or sports as notified by the Central Government, shall be considered to be an institution established in India for a charitable purpose.

FAQs on Section 133 of Income Tax Act 2025

What is Section 133 of the Income Tax Act, 2025 about?
Section 133 provides for deductions from total income in respect of donations made to certain specified funds, charitable institutions, and authorities.

From which date is Section 133 applicable?
Section 133 is applicable with effect from 1st April, 2026.

Who can claim deduction under Section 133?
Any assessee who makes eligible donations during the tax year can claim deduction under this section.

What types of donations are eligible for 100% deduction under Section 133(1)(a)?
Donations made to specified national and state-level funds and institutions listed under Section 133(1)(a) are eligible for 100% deduction.

Which major funds qualify for full (100%) deduction under Section 133(1)(a)?
These include the National Defence Fund, PM CARES Fund, National Children’s Fund, National Blood Transfusion Council, and the Swachh Bharat Kosh, among others.

Can donations to educational institutions be eligible for full deduction?
Yes, if the institution is of national eminence and approved by the prescribed authority.

Are donations to local authorities eligible for full deduction?
Yes, but only in certain specific cases, such as Zila Saksharta Samiti for primary education improvement.

Are corporate donations eligible under Section 133?
Yes, including donations for development or sponsorship of sports and games by companies to approved institutions.

Is any deduction allowed for donations made in kind (non-monetary donations)?
No, deductions are allowed only for donations made as a sum of money.

Are cash donations allowed for deduction under Section 133?
Yes, but only if the donation does not exceed ₹2,000. Donations above ₹2,000 must be made by non-cash modes to qualify.

What is the deduction limit for donations under Section 133(1)(b)?
50% of the donation amount is allowed as deduction under this clause.

What are some examples of funds eligible for 50% deduction under Section 133(1)(b)?
These include the Prime Minister’s Drought Relief Fund, registered charitable institutions approved under section 354, and local authorities for charitable purposes.

Is there any cap or limit on the amount of deduction under this section?
Yes, if aggregate donations to certain entities exceed 10% of the adjusted gross total income, the excess is not deductible.

Which donations are subject to the 10% cap of adjusted gross total income?
Donations under section 133(1)(a)(xxiii) and (xxiv), and 133(1)(b)(ii) to (v) and (vii) are subject to this limit.

What is adjusted gross total income under Section 133?
It is the gross total income reduced by exempt incomes and other deductions under the same chapter.

Can the same donation be claimed under multiple deduction sections?
No, once a deduction is allowed under Section 133, it cannot be claimed under any other section of the Act.

What verification is required for donations to institutions under Section 133(1)(b)(ii)?
The deduction is allowed only if the institution furnishes information to the prescribed authority and it is verified as per the Board’s risk management strategy.

Are donations made by companies as part of CSR eligible for deduction under this section?
No, donations made in pursuance of CSR obligations under section 135(5) of the Companies Act, 2013 are not eligible for deduction under this section.

Are donations for religious purposes covered under Section 133?
No, donations for purposes substantially of a religious nature are excluded from the definition of charitable purpose under this section.

Can deduction be claimed for renovation of religious places?
Yes, if the place is notified by the Central Government as being of historic, archaeological or artistic importance or of public worship of renown.

Is approval required for all institutions or funds to be eligible for deduction?
Yes, in cases like 133(1)(b)(ii), the fund or institution must be approved under section 354 and satisfy prescribed conditions.

Are contributions to blood transfusion councils eligible for full deduction?
Yes, both the National and State Blood Transfusion Councils qualify under Section 133(1)(a)(x).

Can donations to promote family planning get full deduction?
Yes, donations to government or approved authorities for promoting family planning are eligible under Section 133(1)(a)(xxiii).

Who notifies the associations eligible for sports development donations under companies clause?
The Central Government may notify such associations based on prescribed guidelines.

Can excess donations beyond the 10% limit be carried forward?
No, the excess amount beyond 10% of adjusted gross total income is simply ignored for deduction purposes.

Do donations made to state relief funds qualify for deduction?
Yes, if they meet the conditions specified under Section 133(1)(a)(xv), such as being the only fund in the state and under proper administrative control.

Is there any reporting obligation for institutions receiving donations under Section 133?
Yes, especially under Section 133(6), where institutions must report donation information to the prescribed authority for the assessee to claim deduction.