Donation to PM cares fund eligible for CSR fund as well as 80G deduction for F.Y. 2019-20

written by ADMIN | April 1, 2020

We are in some difficult times and we need to unite together to help the needy and we must contribute to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund) set up with the primary objective of dealing with any kind of emergency or distress situation such as that posed by COVID 19 pandemic. These donations would be eligible for CSR as well as 100% deduction u/s 80G of the Income tax Act as under.

Many big companies and individuals have been contributing to such fund and now there has been one more good news relating to above that contribution made to above shall be eligible for CSR as clarified by MCA in one of its Office Memorandum, wherein it has been clarified that:

“Item no. (viii) of the Schedule VII of the Companies Act, 2013, which enumerates activities that may be undertaken by companies in discharge of their CSR obligations, inter alia provides that contribution to any fund set up by the Central Government for socio-economic development and relief qualifies as CSR expenditure. The PM-CARES Fund has been set up to provide relief to those affected by any kind of emergency or distress situation. Accordingly, it is clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013.”

Also with regard to Income Tax, such contribution shall be eligible for 100% deduction u/s 80G without any upper cap and same was clarified in the ordinance issued by Ministry of Finance Yesterday, wherein it has been mentioned in the last para of the ordinance that:

“As the date for claiming deduction u/s 80G of the I.T. 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 upto 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.”

Thus from the above it’s clear that 80G deduction for donation to such fund shall be available against income of F.Y. 2019-20 as there was some confusion in this regard. PAN of the above fund is AAETP3993P.

There are various fake UPI ID’s being circulated during this times and hence it’s a request to everyone that the correct UPI ID for PM cares fund is “pmcares@sbi”. Many people are spreading incorrect id in form of “pmcare@sbi” or “pmcarefund@sbi”. Hence one should check properly before submitting your donation.

 

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