The Prime Minister of India, Dr. Manmohan Singh, has appealed to all citizens of India to stand with our distressed countrymen affected by the extensive devastation due to cloud burst and floods in the state of Uttarakhand where a large number of people have died and property worth crores of rupees has been damaged. The Prime Minister has appealed to all fellow citizens to donate generously to the Prime Minister’s National Relief Fund. (PMNRF).
In cases where employees make donations to the Prime Minister’s National Relief Fund, the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque.
In this regard, Circular No. 2/2005, dated 12-1-2005 clarifies that employee who makes donations towards these funds is eligible to claim deduction under section 80G. The claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf.
As part of corporate social responsibility, it will be good if companies stand up and heed to the appeal message of the Hon’ble Prime Minister and stir the employees to come forward and make generous contributions to the PMNRF which will also allowed as 100% deduction from their taxable salary at the time of considering the TDS under section 192 by the employer.
Varun Dhawan, CA
Vice President: Taxation, Blue Dart Express Ltd.
Views expressed are in a personal capacity