Income Tax Exemption: Employees donating to PM-CARES fund via employers to get Section 80G benefit

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April 11, 2020 6:40 AM

The clarification came as the employees, in many cases, have donated a portion of their salaries the the fund through their employers.

Form 16 is a certificate issued by employers to employees detailing the tax deducted at sources (TDS).Form 16 is a certificate issued by employers to employees detailing the tax deducted at sources (TDS).

The Central Board of Direct Taxes (CBDT) on Friday clarified that an employee making a donation to the PM-CARES fund through the employer can claim income tax deduction under Section 80G on the basis of Form 16 issued by the employer. Form 16 is a certificate issued by employers to employees detailing the tax deducted at sources (TDS).

The board said employers would mention the donation amount against employees in their respective Form 16. The TDS certificate would be considered as a conclusive evidence of donation and tax deduction under the relevant section would be allowed to these employees.

The clarification came as the employees, in many cases, have donated a portion of their salaries the the fund through their employers. “However, in all such cases, where actual donation is made by employees, the consolidated donation receipt is issued in name of the employer, as it goes into the fund through the employer’s account,” Shailesh Kumar, director at Nangia Andersen Consulting, said.

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