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PM CARES Fund – A Complete Guide

by | Jun 18, 2024 | Income Tax | 0 comments

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PM CARES Fund – A Complete Guide

The PM CARES Fund, established by the government, serves as a critical resource during public health crises such as the COVID-19 pandemic. It allows citizens to contribute towards supporting government efforts during challenging times. Notably, contributions made to the PM CARES Fund are eligible for a full tax deduction, offering an incentive for individuals and organizations to participate in relief efforts. This initiative underscores the collective responsibility and solidarity of the nation in times of crisis, emphasizing the importance of community support and national resilience.

PM CARE Fund

PM CARES Fund, officially known as the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund, was established by the Government of India in March 2020. It operates as a public charitable trust aimed at providing timely assistance during emergencies and distress situations, including crises like the COVID-19 pandemic. Managed under the guidance of the Prime Minister and other government officials, the fund serves several key purposes:

  1. Provide Relief: The primary objective of PM CARES Fund is to offer immediate relief and assistance to individuals and communities affected by disasters, health crises, or emergencies. It ensures swift support reaches those in need, facilitating recovery and resilience.
  2. Research and Development: Another crucial role of the fund is to promote and support research and development activities, particularly in areas critical to public health. This includes funding for research initiatives aimed at developing solutions to combat emerging health challenges.
  3. Enhance Healthcare Infrastructure: PM CARES Fund allocates significant resources towards strengthening healthcare infrastructure. This involves investments in medical equipment, establishment of healthcare facilities, and support for healthcare professionals on the frontlines of emergencies.

Who can Donate to PM CARE Fund?

The PM CARES Fund, established by the Government of India, welcomes contributions from various entities including individuals, Hindu Undivided Families (HUFs), firms, and companies. The minimum donation amount is set at INR 10, and contributions must be made electronically or via UPI (Unified Payments Interface).

For companies, contributing to PM CARES Fund can be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act of 2013, providing an avenue for corporate entities to fulfill their social obligations.

Foreign entities and individuals residing outside India can also participate by contributing to the fund. Such donations are exempted under the Foreign Contribution Regulation Act (FCRA), making them eligible for tax exemption in their respective countries.

It’s important to note that PM CARES Fund operates solely on voluntary contributions from the public and does not receive funding from the national Budget. Therefore, expenditures from the fund do not require prior government approval, ensuring flexibility in deploying resources swiftly during emergencies and distress situations.

Tax Deductions on Donations made to PM CARES Fund

Donations made towards the PM CARES Fund are eligible for a 100% tax deduction under section 80G of the Income Tax Act. This provision allows individuals, Hindu Undivided Families (HUFs), firms, and companies to claim the entire amount of donation as a deduction from their taxable income.

Key points regarding tax deductions on donations to PM CARES Fund include:

  1. Eligibility for Deduction: Contributions made to PM CARES Fund qualify for 100% deduction under section 80G. This deduction helps reduce the total taxable income, thereby lowering the tax liability.
  2. Timing of Deduction: Donations made between April 1, 2020, and June 30, 2020, can be claimed for deduction in the Financial Year (FY) 2019-20 (Assessment Year 2020-21). Taxpayers can claim this deduction while filing their income tax returns for that year.
  3. One-time Claim: It’s important to note that the deduction for donations to PM CARES Fund can be claimed only once. If a taxpayer claims the deduction in AY 2020-21, they cannot claim it again in subsequent years like FY 2021-22.
  4. Exception for FY 2020-21: For the Financial Year 2020-21, individuals who have opted for the new tax regime are also eligible to claim a deduction on donations made to PM CARES Fund, despite not claiming other deductions under section 80G.

These provisions encourage individuals and organizations to contribute towards the PM CARES Fund by providing a tax benefit, thereby supporting national efforts during emergencies and distress situations. It reinforces the government’s initiative to mobilize public and corporate support for critical relief and rehabilitation efforts.

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

    1 1 1
  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 DetailsNow confirm all your details on the Confirmation screen.
  5. Select a Payment OptionFrom the list of payment options available, select the one that’s suitable for you.
  6. Get the Donation ReceiptAfter 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:
  • Name of the Account: PM CARES
  • Account Number: 2121PM20202
  • IFSC Code: SBIN0000691
  • SWIFT Code: SBININBB104
  • Name of Bank & Branch: State Bank of India, New Delhi Main Branch
  • UPI ID: pmcares@sbi
Domestic Donation Payment Modes:
  • Debit Cards and Credit Cards
  • Internet Banking
  • UPI (BHIM, PhonePe, Amazon Pay, Google Pay, Paytm, Mobikwik, etc.)
  • RTGS/NEFT
Foreign Donation Payment Options:
  • Foreign credit/debit card
  • Wire transfer/ SWIFT
Additional Information:
  • PAN of PM CARES Fund: AAETP3993P
  • Address: Prime Minister’s Office, South Block, New Delhi, 110011

When claiming tax deduction under section 80G for donations to PM CARES Fund, ensure to provide mandatory details such as PAN of the fund and complete address of the registered office. This information is crucial for processing tax benefits related to charitable contributions.

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Official Income Tax Return filing website: https://incometaxindia.gov.in/