If you donate to PM Cares Fund, you can claim tax deduction only once. The taxpayer who has claimed tax in the financial year 2019-20 cannot claim the deduction again in the financial year 2020-21.
The Income Tax Department has given an important information for people donating or donating to the PM Cares Fund. This information is related to exemption on income tax. Income Tax has said that the amount of donation or donation to PM Cares Fund will come under the purview of 100% tax deduction. According to the Income Tax Department, those who deposit money in this item will get the facility of 100% tax deduction under section 80G of Income Tax.
Income Tax has said that the amount of donation given to PM Cares Fund till June 30, 2020 will come under the purview of tax deduction for the financial year 2019-20. Donors can also avail deduction under 80G in the consensual tax regime for the financial year 2019-20 in 2020-21. If a person donates to the PM Cares Fund, then there will be no obligation to donate 10 percent of the total income to charity.
Rule of PM CARES
One can donate in three ways under PM Cares Fund. First, domestic or domestic donation, second, foreign or foreign donation which will be done through credit and debit cards and third, foreign donation which will be done by wire transfer or SWIFT swift. If you are donating online, then for that you have to visit the website of PM Cares Fund https://www.pmcares.gov.in/en/web/contribution/donate_india. Here name, email, PAN number, donation amount, address, pin code, state and mobile number will have to be given. After the donation transaction is successful, the donor gets a receipt which can be downloaded from the PM CARES portal. Once the donation is processed, it is not canceled nor is it refundable.
Foreign donors can also donate by visiting this portal. For this, they have to give name, email, nationality, national ID number (ssn, eID), currency, dollar amount, address, postal or zip code, country, and mobile number with ISD code. If a foreign person donates through wire transfer or SWIFT, then he will have to provide bank details such as currency, amount, donor account number, donor bank name, donor bank address and IBAN or routing.
How to donate
You can donate through net banking through State Bank and other commercial banks. In card payment, you can donate through SBI ATM cum Debit card, Debit card of other banks, Credit card, Prepaid card and Foreign card. You can also donate through SBI branch and NEFT or RTGS. Those who are switching over to the old tax slab, their donation amount will be entitled for 100% tax exemption under section 80G of Income Tax.
Income tax rules
If you donate to PM Cares Fund, you can claim tax deduction only once. The taxpayer who has claimed tax in the financial year 2019-20 cannot claim the deduction again in the financial year 2020-21. If an individual or HUF makes donation for the financial year 2020-21, then he can also claim under the new tax regime. If the donor has claimed deduction under section 80G in any financial year, then there is no provision to claim it again under any other income tax rule in the same financial year. If someone donates to the PM Cares Fund, then he will also get the benefit of tax exemption. This tax exemption can be claimed under CSR or Corporate Social Responsibility (CSR). Companies covered under the Companies Act, 2013 can take advantage of this exemption.
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