Coronavirus Donations: Gave money to PM CARES Fund? You will get this big benefit

Are you among those who donated money to PM CARES Fund in times of coronavirus crisis? You are eligible for a big benefit! In a move to encourage contributions for the fight against the coronavirus pandemic, the government has decided to make all donations towards the PM-CARES Fund eligible for 100 per cent tax deduction. The decision was part of an ordinance promulgated on Tuesday to put into effect the decisions announced by the Finance Minister last week regarding several compliances and regulatory norms in view of the coronavirus outbreak.

Moreover, the limit on deduction of 10 per cent of gross income shall also not be applicable for donations made to PM-CARES Fund. An official statement said that among the decisions, "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's National Relief Fund. Therefore, the donation made to the PM-CARES Fund shall be eligible for 100 per cent deduction under section 80G of the IT Act."

Income Tax Act: 80G

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. The official statement said that as the date for claiming deduction u/s 80G under IT Act has been extended up to June 30, 2020, the donations made till then 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 June 30 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," it said.