Monday, September 21, 2020

    Employees can claim 100% deduction on donations made to PM-CARES via employers

    The Central Board of Direct Taxes (CBDT) has said the employees who have contributed to the PM-CARES fund through employers can claim full tax deduction by mentioning it in Form 16. A separate certificate will not be issued for every employee for the donation, CBDT added.


    Ajay Nirmal
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    The government has said employees can claim 100 per cent tax relief on donation to PM-CARES Fund. The employees can get relief on the donation made through their employer by mentioning it in their Form-16, the Central Board of Direct Taxes (CBDT) said in a clarification.

    “In cases where donation is made to the fund by an employee through employer, the fund may not be able to issue separate certificate to every such employee in respect of the donation so made, as the contributions made to the fund are in the form of a consolidated payment,” it added.

    The donation to the PM-CARES Fund would be eligible for complete tax deduction under Section 80-G of the Income Tax Act, the government statement said. It also provided a big relief to taxpayers with respect to their pending applications for lower or nil deduction of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) by extending the validity of the certificates issued for FY20 to June 30, 2020.

    Even certificates of those assesses, who have not been able to apply for lower or nil deduction certificates for FY21 but were issued such certificates for FY20, will be valid till June 30, 2020.

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