As the World is going through COVID-19 Pandemics, India has realized the need of a fund for that will be primarily dealing with any kind of emergency or distress situation. Hence the Prime Minister Narendra Modi announced set up of a Public Charitable Trust in the name of PM CARES Fund.
Objectives
- To undertake and support relief or assistance of any kind relating to a public health emergency or any other kind of emergency, calamity or distress, either man-made or natural, including the creation or up gradation of healthcare or pharmaceutical facilities, other necessary infrastructure, funding relevant research or any other type of support.
- To render financial assistance, provide grants of payments of money or take such other steps as may be deemed necessary by the Board of Trustees to the affected population.
- To undertake any other activity, which is not inconsistent with the above Objects
Funds
The PM CARES Funds source of funds will be entirely voluntary contributions from individual and organizations.
Income Tax Perspective
- The donations to PM CARES Fund would qualify 100% exemption under the Income Tax Act, 1961
- Amid COVID-19 Pandemics, the Government has extended the deadline for making tax saving investment till 30th June, 2020
- The Taxpayer is still allowed to claim the deduction made to PM CARES Fund under section 80G if he chooses to opt for the Concessional tax regime for the FY 2020-21
- Restriction of 10% of Gross Total Income will not be application to the donations made PM CARES Fund.
Companies Act, 2013 Perspective
- Donations made to PM CARES Fund will also be qualified for CSR (Corporate Social Responsibility) Expenditure under the Companies Act, 2013
FCRA Perspective
- PM CARES Fund has also got exemption under the FCRA and a separate FCRA account has been opened to receive the Foreign funds. The Organizations having received Foreign funds can also donate from that source to the PM CARES Funds FCRA account if they have the similar objects.