Deduction to Employees for donations made to PM Care Fund

The Prime Minister’s office while appealing to the people of India to donate for the “PM Care Fund” has expressed that “The COVID-19 pandemic has engulfed the entire world and has posed serious challenges for the health and economic security of millions of people worldwide. In India too, the spread of corona virus has been alarming and is posing severe health and economic ramifications for our country”.

Therefore, keeping in mind the need for a dedicated national fund with the primary objective of dealing with current pandemic and any other emergency situation a public charitable trust under the name of ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund)’ has been set up to provide relief to the affected people.

Further, it has also been made subject to deduction u/s 80G of the Income Tax Act, 1961

Since the introduction of said “PM Care Fund” there is lot of discussion about the allowability of deduction u/s 80G to the employees for donation made by them to such fund through their employers.

Therefore, CBDT Vide communication (F.No. 178/7/2020-ITA-I) dated 09.04.2020 states that ’In cases where donation is made to the PM CARE Fund by an employee through his/her employer, the Fund may not be able to issue separate certificate to every such employee in respect of the donation so made, therefore, deduction in respect of such donations will be available u/s 80G on the basis of Form 16/Certificate issued by DDO/Employer.

Now all person making donation to the PM Care Fund directly or through their employer will be eligible for 100% deduction u/s 80G of the Income Tax Act.

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