PM CARE FUND – POLITY
News:
Why PM CARES Fund is not subject to public audit or covered under RTI, asks
Congress
What's in the news?
● Alleging
that the PM CARES Fund is shrouded in secrecy, the Congress on April 25 asked
why it has no transparency, accountability and is not subjected to any audit or
covered under the Right to Information (RTI) Act, despite 60% of its funds
coming from public sector undertakings (PSUs).
PM CARES:
● Prime
Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES
fund) has been registered as a Public
Charitable Trust. The trust deed of PM CARES Fund has been registered under the Society Registration
Act, 1908.
Objective:
● It
has been set up keeping in mind the need for having a dedicated fund with the primary objective of dealing with any kind
of emergency or distress situation, like posed by the COVID-19 pandemic,
and to provide relief to the affected.
Administrative structure:
● The
Prime Minister is Chairperson
(ex-officio) of the PM CARES Fund and Minister of Defence, Minister of Home
Affairs and Minister of Finance are ex-officio Trustees of the Fund.
● The
Prime Minister as the Chairperson of the Board
of Trustees of Fund has the power to nominate three trustees to the Board
who shall be eminent persons in the field of research, health, science, social
work, law, public administration and philanthropy.
● All
the Trustees of the PM CARES Fund act in a pro bono capacity.
● The
fund is administered on an honorary basis by a Joint Secretary
(Administration)in the PMO as Secretary to the fund.
● PM
CARES Fund is audited by an independent
auditor.
Source:
● PM
CARES Fund accepts voluntary
contributions by individuals/organizations as well as contributions as part
of CSR from Companies/Public Sector Undertakings (PSUs).
● However,
contributions flowing out of budgetary sources of the PSUs are not accepted.
Tax exemptions:
● All
contributions towards the Fund are 100% exempt from Income Tax under Section 80(G) of the Income Tax Act, 1961 for
those who opt for the old tax slabs.
● The
fund is exempted from paying Income Tax as per Section 10(23) (c) of Income Tax
Act, 1961.
● Donations
to PM CARES Fund will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the
Companies Act, 2013
● PM
CARES Fund has also got exemption under the FCRA and a separate account for receiving foreign donations has
been opened.