Tax benefits offered to individuals, corporates under PM-CARES Fund

New Delhi: In order to fight the Coronavirus outbreak in India, the PM CARES, or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund, has been set up as a public charitable trust. Prime Minister Narendra Modi is the chairman of this trust and its members include Defence Minister, Home Minister And Finance Minister.

In order to encourage people to contribute to this fund so as to enhance the fight against the coronavirus pandemic, the government has decided to make all donations towards the PM-CARES Fund eligible for 100 per cent tax deduction.

An Ordinance has already been promulgated for the same. Also, the last date for filing income tax returns for 2018-19 as well as that for linking PAN with biometric ID Aadhaar has been extended by three months to June 30.

Key highlights of the Ordinance:

1. The ‘Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020’ amends a provision in the Income Tax Act to allow 100 per cent deduction on donations to the PM-CARES Fund. According to a government statement, the Ordinance “also amended the provisions of the Income-tax Act to provide the same tax treatment to PM-CARES Fund as available to Prime Minister’s National Relief Fund. Therefore, all donation made to the PM-CARES Fund shall be eligible for 100 per cent deduction under section 80G of the IT Act”.

2. The limit on deduction of 10 per cent of gross income shall also not be applicable for donation made to PM-CARES Fund.

3. The date for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations) has been extended up to June 30, 2020. So, the donations made till then shall also be eligible for tax deduction from income of FY20.

The official statement stated, “any person, including corporate, paying concessional tax on income of FY 2020-21 under new regime can make donation to PM-CARES Fund up to June 30 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21.”

(This is an unedited and auto-generated story and may not have modified or edited by Quickclarity news)

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