PM CARES FUND

PM CARES FUND

TOPIC: Polity

Context- The PM CARES Fund collected ₹10,990 crore since its inception in March 2020 until March 2021 and spent ₹3,976 crore during the 2020-21 financial year, according to the audited financial statement.

Concept-

About the Fund:

• The Fund is a public charitable trust with the Prime Minister as its Chairman.
  • Other Members include Defence Minister, Home Minister and Finance Minister.
• The Fund enables micro-donations as a result of which a large number of people will be able to contribute with the smallest of denominations. The Fund will strengthen disaster management capacities and encourage research on protecting citizens.
• The fund is recognized as a Trust under the Income Tax Act and the same is managed by the Prime Minister or multiple delegates for national causes.
• It can avail donations from the foreign contribution and donations to fund can also avail 100% deduction from taxable income under section 80(G) of the Income Tax Act, 1961.
• Contribution to PM – CARES Fund will Qualify as CSR Expenditure.
  • The Ministry of Corporate Affairs has clarified that contributions by companies towards the PM-CARES Fund will count towards mandatory Corporate Social Responsibility (CSR) expenditure.
  • Under the Companies Act, 2013, companies with a minimum net worth of Rs 500 crore or turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required to spend at least 2% of their average profit for the previous three years on CSR activities every year.