Posted on 01-04-2020:
PM Cares fund eligible for 100% deducation under Section 80G
A special fund “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” has been set up for providing relief to the persons affected from the outbreak of Corona virus. Contribution towards PM CARE Fund, was eligible for 50% deduction in view of it being notified under section 80G(5), as against PM National Relief Fund, which is eligible for 100% deduction under Section 80G(1) read with clause (iiia) of section 80G(2).
Thus in order to provide 100% deduction of the amount being contributed to PM CARES FUND to fight Coronavirus ordinance has been amended. 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 National Relief Fund. Further, the limit on deduction of 10% of gross income shall also not be applicable for donation made to PM CARES Fund.
Below is Legal Text from the Ordinance:
A special fund “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” has been set up for providing relief to the persons affected from the outbreak of Corona virus. 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 National Relief Fund. Therefore, the donation made to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act. Further, the limit on deduction of 10% of gross income shall also not be applicable for donation made to PM CARES Fund.
As the date for claiming deduction u/s 80G under IT Act has been extended up to 30.06.2020, the donation made up to 30.06.2020 shall also be eligible for deduction from income of FY 2019-20. Hence, 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 30.06.2020 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.
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