PM CARES donation through employer: No separate certificate, your FORM 16 will carry amount, says CBDT

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Updated: April 10, 2020 8:18:03 PM

The deduction under section 80G towards the donation for PM CARES Fund will be indicated in the Form 16 certificate issued by the employer.

 PM CARES Fund online, donation, tax benefit, section 80G, form 16, salaried, employee, employerOne can visit the pmindia.gov.in website to donate to PM CARES Fund online.

PM CARES 80G Tax Benefit: The Central Board of Direct Taxes (CBDT) has communicated that the employees who have made a donation towards Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund) through their employers will not be provided with a separate certificate for tax purpose. Instead, the employers will be mentioning the amount of donation when they issue Form 16 to the employees.

In the communication, CBDT informs that in the case where the donation is made to the PM CARES Fund by an employee through his or her employer, the PM CARES Fund may not be able to issue a separate certificate to each such employee in respect of the donation made, as the contribution made to the PM CARES Fund is in the form of consolidated payment.

The deduction towards the donation under section 80G will, therefore, be indicated in the Form 16 certificate issued by the employer or the Drawing and Disbursing Office ( DDO).

‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund)’ was set up by the government so as to have a dedicated national fund with the primary objective of dealing with any kind of emergency or distress situation such as COVID-19 pandemic.

One can visit the pmindia.gov.in website to donate to PM CARES Fund online.

The donation made to the PM CARES Fund will be eligible for 100 per cent deduction under section 80G of the IT Act. Further, the limit on the deduction of 10 per cent of gross income shall also not be applicable for donation made to PM CARES Fund.

Earlier, the government had extended the last date for saving tax for the FY 2019-20 to June 30, 2020. Therefore, taxpayers who wish to save tax for FY 2019-20 can make a donation in PM CARES Fund and yet save tax for AY 2020-21.

For those taxpayers who wish to opt for the new tax regime in FY 2020-21 can also save tax for FY 2019-20 by donating till June 30, 2020. They will not lose the eligibility to pay tax in concessional rate as per the new tax regime.

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