Tax Benefit for Individuals and Corporates: COVID-19 PM Cares Fund
In order to encourage contributions for the fight against the coronavirus pandemic, the government in addition to the relaxation for extending due dates and interest rates vide press conference dated 24.03.2020, has decided to make all donations towards the newly established PM-CARES FUND ELIGIBLE FOR 100 PER CENT TAX DEDUCTION.
The additional benefits given for donation made under PM Cares Fund, applicable from 01.04.2020 to 30.06.2020 are as follows:
- 100 per cent deduction under section 80G on donations to the PM-CARES (COVID-19) Fund, similar to the Prime Minister’s National Relief Fund.
- Upper cap on deduction of 10 per cent of gross income shall not be applicable for donation made to PM-CARES Fund.
- Corporates and Non-Corporates opting under concessional new tax regime (u/s 115BBA, 115BAB and 115BAC), shall be able to claim 100% deduction under section 80G from income of FY 2019-20 and shall not lose eligibility to pay tax in concessional taxation regime for income of FY 2020-21.
- Contributions to the PM CARES fund have been recognized as eligible CSR spending specified under the Companies Act.
Source: Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 31.03.2020
