Hon’ble Prime Minister has taken a very good initiative of setting up the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) as a public charitable trust to motivate people to contribute to a cause that has threatened humanity across the globe and to raise resources required for fighting the coronavirus crises.
The Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 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 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.
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 corporate paying concessional tax on income of FY 2020-21 under new regime can 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 vide F.No. 178/7/2020-ITA-1 dated 09-04-2020 it has been clarified that in cases where donation has been made by Employee through his/her Employer and the Employer made the contribution as a Consolidated Fund, then deductions will be admissible u/s 80G of the Act on the basis of the Form 16/Certificate issued by the Employer.
This Article was authored by Tushant a passionate blogger by .
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