> 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. Therefore, section 80G has amended to provide the same tax treatment to PM CARES Fund as available to Prime Minister National Relief Fund.

> Hence, now every person who makes contribution 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. Accordingly unlimited amount as per finance capability can be contribute to PM CARES Fund to help the nation to fight with COVID-19.

> Since, 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.

> Any person including corporate paying concessional tax on income of FY 2020-21 under new regime can also 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.

> Further, on dated 09-04-2020,  CBDT also clarified that donation made to PM CARES Fund are eligible for 100% deduction under section 80G in a case where donation made to the fund by the employee through his/her employer, even though the fund may not be able to issue a separate certificate to every such employee in respect of donation so made, as the contribution made to the fund are in the form of consolidated payment.

Let’s analysis the effect in details

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We are in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. We handle the litigation matters in assessment and appeal. We provide expert advice in Transfer Pricing and International Taxation. We also deal in Government Grant and Incentive Scheme provided by central and View Full Profile

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