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 by the outbreak of Coronavirus. 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). 

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 a 100% deduction under section 80G of the IT Act. Further, the limit on the deduction of 10% of gross income shall also not be applicable for donations 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 the corporate paying concessional tax on the income of FY 2020-21 under new regime can make a 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 an income of FY 2020-21.

The Press Release of the Ordinance which can be accessed at: https://taxguru.in/income-tax/fm-releases-ordinance-relaxation-24th-march-2020.html

Extract from Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

Amendment of sections 10 and 80G of Act 43 of 1961.

4. In the Income-tax Act, 1961, with effect from the 1st day of April, 2020,‑

(i) in section 10, in clause (23C), in sub-clause (i), after the word “Fund”, the words and brackets “or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” shall be inserted;

(ii) in section 80G, in sub-section (2), in clause (a), in sub-clause (iiia), after the word “Fund”, the words and brackets “or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” shall be inserted.

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29 Comments

  1. sudhanraj1992@gmail.com says:

    Hi,
    My Taxable Income is Rs.5,03,000/- and I have made Rs.5000 to PM Cares Fund in the month of May.
    Does my Annual Income be reduced to Rs. 4,98,000/- ?
    If yes, how will I claim the additional Tax Amount that I Paid that Last year while filing the ITR??

  2. Sudhanraj says:

    Hi Sir,

    My Taxable Income Last year(FY2019 – 20) was Rs.5,03,000 and also i have made donation Rs.5000/- on April 2020. As per Latest Government Announcement on 80G, Does my Taxable Income be reduced to 4.98 Lakhs?
    If yes, then will I get the Additional Taxes Amount that I paid??
    And also, how to add this PM Cares Donation in ITR to get this Tax Benefit??

  3. Karan kadmawala says:

    I am filing ITR 1 and have contributed to PM CARES fund. I need to enter the address, city, state and PIN Code of the fund. Where can I get the same?

  4. R RAMANUJAM says:

    I have donated one day salary (in my April-20 salary) to PM Care Fund through my employer and I am told that the contributions are deposited to PM Care Fund in the first week of May-20. Should I avail this benefit in 20-21, since I have opted new tax regime in 20-21? Please explain, else I will avail this benefit in 19-20?

  5. kamal says:

    sir ,
    i want to know one queary my taxable income are coming 506008………….IN fy 2019-20 Rs even i already 80 c did saving 149000 rs 80 D also……

    sir if i do 6200 rs donation to PM CARE …can i get benifit of 6200 which less my taxable income come below five lakh …….can it possible by itr i can get rebate my company deducted 14000 rs tax in march last month salary………………is it possible

  6. D.K.SHARMA says:

    BEING A SENIOR CITIZEN I DONATED 2100 TO PM CARES FUND THROUGH EAZY PAY CHANNEL ON 27/04/2020.HOW I WILL GET DONATION CERTIFICATE TO GET TAX REBATE FOR THE FY 2019-2020.

    1. Pratik Gupta says:

      Dear Sir,

      If you didnt get 80G certificate then you have to write an email to customer care of that particular payment channel

  7. Ravi says:

    I will donate some amount now and claim the same as part of 80G for the FY 19-20 in IT returns.

    Could you please explain the second part to me?

    “shall also not lose his eligibility to pay tax in concessional taxation regime for an income of FY 2020-21”

  8. Amar jeet says:

    If anyone has deposited cash in sbi branch in pm cares fund for donation, hw he will get the certificate/will be eligible for 80g

    1. Pratik Gupta says:

      Hi

      You will get from respective link only on which u have made payment and if you don’t get then write to customer care or relevant mail I’d

  9. Dnyaneshwar Kashinath Shetkar says:

    does the individual members can get 100% exempted for the donation contributed by them to the trust towards PM cares fund

  10. Priya says:

    If donation to PM care fund is routed through the employer, can employer provide donation certificate and deduction under 80G as similar to PM national relief fund which is allowed as per circular of 2005

  11. Soham Joshi says:

    I have contributed to PM care fund via paytm app.
    I have not received the certificate for tax exemption under section 80G.
    For obtaining the certificate what is the procedure.

    Regards

    Soham Joshi

  12. Pratik Gupta says:

    Fund will eligible for 80G 100% deduction since it’s a specific fund and also this fund is made for Nobel cause and as per me no inquiry will me made

  13. sanjeevnanda says:

    There is an air of speculation surrounding the PM Cares Fund launched by Narendra Modi this past week. Since it is a charitable fund, will it be open to inquiry? If yes, will the fund be taxable, considering the huge amounts of funds being poured into it? Giving a 100% tax deduction under 80C does ease mega-donors, but does peanuts for small-rupee payments.
    ~Sanjeev Nanda

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