PM CARES Fund - A Complete Guide

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Maharshi Shah

Income Tax
Tax Benefits
Tax Benefits on PM Caares Fund
Last updated on January 18th, 2024

PM CARES fund, set up by the government aims to provide relief during public health emergencies like COVID-19. This fund enables the citizens of our country to contribute and help the government during tough times. Furthermore, contributions towards the fund are 100% tax deductible.

PM CARES Fund

The Government set up the PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations) in March 2020 as a public charitable trust. Recognizing the essential need for a dedicated national fund, its purpose is to provide relief or assistance during various emergency or distress situations, including events like the COVID-19 pandemic. The Prime Minister, along with other government officials, actively manages the fund.

The major objectives for creating this fund are as below:

Who can Donate to PM CARES Fund?

Any person such as an individual, HUF, or firm can make contributions toward this fund. The minimum amount of donation that one can make to the fund is INR 10.  It is mandatory to make donations electronically or via UPI.

Additionally, companies have the option to contribute funds to PM CARES, and in doing so, this donation can be accounted for as an expenditure related to Corporate Social Responsibility under the Companies Act of 2013.

Furthermore, both organizations and individuals residing in foreign countries can participate by making contributions to the fund. These donations qualify for exemption under the Foreign Contribution Regulation Act (FCRA). Consequently, contributions from foreign entities and individuals will be eligible for tax exemption.

Note: The fund will only receive voluntary contributions from the public rather than receiving funding from the Budget. As a result, the spending from the fund will not require any prior approval.

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Tax Deductions on Donations made to PM CARES Fund

The contributions made towards the PM CARES Fund are eligible for a 100% tax deduction under section 80G.

Anyone donating between April 1, 2020, and June 30, 2020, is eligible to claim the deduction in the FY 2019-20 (AY 2020-21). Hence, the taxpayer can claim the deduction while filing the income tax return. However, it is important to note that the deduction for donation can be claimed only one time. A taxpayer who claims a deduction in AY 2020-21 cannot claim in FY 2021-22. Further, an exception is also made for the FY 2020-21, where any person who has opted for the new tax regime can also claim a deduction on the donation.  

The procedure to make a Contribution

Donate to the fund by following these steps:

  1. Go to the PM CARES Fund Website

    Visit the website of Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund

  2. Select the Relevant Option

    Now, under ‘How to Donate’, select the relevant option

  3. Enter the Details and Proceed

    Add in the details like name, address, PAN, country, nationality, e-mail ID, phone number, and amount of donation. Read the terms and conditions and then click on receive OTP.Enter details on PM Cares Fund

  4. Confirm the Details

    Now confirm all your details on the Confirmation screen.

  5. Select a Payment Option

    From the list of payment options available, select the one that’s suitable for you.

  6. Get the Donation Receipt

    After making the payment, you will be redirected to the invoice page from where you can access your Donation Receipt.

Citizens can also use the following information to donate:

PM CARES Fund details:

The following are the payment modes for domestic donations:

In the case of foreign donations following are the payment options:

PAN of PM CARES fund

While claiming the donation under section 80G, certain details are mandatory to report such as PAN, address of the registered office, state, etc.

PAN of the fund: AAETP3993P
Address: Prime Minister’s Office, South Block, New Delhi, 110011

FAQs

Are contributions made towards the PM CARES Fund exempted from Income Tax?

Yes, all contributions under this fund are 100% exempt from Income Tax under Section 80G for those who opt for the old tax regime.

Is there a transaction charge for online payment?

No, there is no transaction charge for online payment. However, some banks may levy net banking transaction charges, which may vary from bank to bank.

What are the different types of donation modes available under the PM Cares Fund?

One can contribute to the PM CARE fund through debit/credit card, net banking, or UPI.

Whether foreign donations allowable under the PM CARES fund?

Yes. PM CARES Fund has received an exemption from the operation of all provisions of the Foreign Contribution (Regulation) Act, 2010.

Got Questions? Ask Away!

  1. Hey @sushil_verma

    There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.

  2. Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA), conveyance, transport allowance, medical reimbursement, etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.

    For eg,

    • Medical allowance is exempt up to INR 15,000 on a reimbursement basis.
    • Children education allowance is exempt up to Rs. 200 per child per month up to a maximum of two children.
    • Conveyance allowance is exempt up to a maximum of Rs. 1600 per month.

    Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.

  3. The benefit Section 80EEB can be claimed by individuals only. An individual taxpayer can claim interest on loan of an electric vehicle of up to INR 1.5 lacs u/s 80EEB. However, if the electric vehicle is used for the purpose of business, the vehicle should be reported as an asset, loan should be reported as a liability and the interest on loan can be claimed as a business expense irrespective of the amount. (We have updated the article with the changes).

    Thus, if you have a proprietorship business, you should claim interest amount as a business expense only if the vehicle is used for business purpose. However, if it is used for personal purpose, you can claim deduction of interest u/s 80EEB in your ITR since you would be reporting both personal and business income in the ITR (under your PAN).

    As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21.

  4. Hey @Sharath_thomas , we have updated the content according to the appropriate assessment year. Thanks for the feedback. :slight_smile:

  5. Hey @shindeonkar95

    In case of capital gain income (LTCG/STCG), transfer expenses are allowed as deduction, except STT.

    However, in case of business income (F&O, intraday), all expenses incurred for the business (including STT) are eligible to claim deduction in ITR.

    Hope, it helps!

  6. Hello,

    Is it possible to claim deductions under S. 80CCF for Infra bonds bought in the secondary market and held to maturity?

    There were a number of 10 year infra bonds issued in the 2010- 2013 period, which will start maturing soon. These are all listed on the exchanges (although hardly any liquidity or transactions in them). If I were to buy some of these bonds in the open markets and hold them in my demat to maturity (<3 years), is it possible to claim tax deductions (upto 20k per year) under 80CCF for buying?

    I couldn’t find anything on this. Any help is appreciated.

  7. Hello @Veejayy,

    Yes you can claim deduction under 80CCF for investment made in specified infrastructure and other tax saving bonds bought in the secondary market and held to maturity.

    Deduction under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government which shall be restricted upto 10,000 per year.

    These bonds are generally long term bonds, having tenure of more than 5 years with a lock in period of 5 years in most of the cases. These bonds can be sold after the lock in period!

    Also, interest earned on these bonds will be taxable.

    Hope this helps!

  8. Hi, I need to file my income tax for FY21, I am using Quicko platform for filing, I wanted to confirm if the ELSS investment amount for the FY21 is to be added in the section 80C, since I already the amount of Rs30,072 , should I add my ELSS amount to this existing amount and submit the total

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