Companies Act amended to make PM CARES Fund eligible for CSR contributions

Until now, only the Prime Minister's National Relief Fund was eligible to receive CSR funding.

The Ministry of Corporate Affairs has issued a notification to make newly-formed PM CARES Fund eligible for contributions from Corporate Social Responsibility (CSR) of companies.

Until now, only the Prime Minister's National Relief Fund was eligible to receive CSR funding.

According to a notification issued by the Union Ministry of Corporate Affairs on May 26, section 467 of the Companies Act, 2013 has been amended to also make PM CARES Fund eligible to receive CSR funding from corporates.

“In Schedule VII, item (viii), after the words "Prime Minister's National Relief Fund", the words - or Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) shall be inserted,” the notification said.

PM-CARES Fund is a special fund set up for providing relief to the persons affected by the outbreak of coronavirus. From corporate to celebrities, the fund has been flooded with donations since Prime Minister Narendra Modi made an appeal in this regard.

Earlier, the government had brought in an Ordinance to give 100% tax relief for donations to PM-CARES Fund.

The Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 amended the provisions of the Income-tax Act to provide the same tax treatment to PM-CARES Fund as available to Prime Minister National Relief Fund.

Donation made to the PM-CARES Fund will be eligible for 100% deduction under section 80G of the IT Act.