PM CARES FUND – POLITY

News: PM CARES Fund receives Rs 535 crore as foreign donations in three years

 

What's in the news?

       The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) received Rs 535.44 crore as foreign donations during the last three years, show the official records.

       The Receipt and Payment Accounts (Audited) of the PM CARES Fund, which was set up in 2020 in wake of Covid-19 pandemic, shows that the value of foreign contributions received in the fund stood at Rs 0.40 crore during financial year 2019-20, Rs 494.92 crore in 2020-21, and Rs 40.12 crore in 2021-22.

 

PM CARES Fund:

       The PM CARES Fund was registered as a public charitable trust under the Registration Act, 1908, in New Delhi on March 27, 2020 - three days after the country went into lockdown in the wake of Covid-19.


Objective:

       It was 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”.

 

Composition:

       The Prime Minister is the ex-officio Chairman of the PM CARES Fund.

       The Defence Minister, Home Minister and Finance Minister are ex-officio trustees of the Fund.

       The PM has nominated three trustees namely Justice K T Thomas (retd), Kariya Munda and Ratan N Tata to the Board.

 

Features:

       Donations to PM CARES Fund would qualify for 80G benefits for 100% exemption under the Income Tax Act, 1961.

       Donations to the 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.

       This enables PM CARES Fund to accept donations and contributions from individuals and organisations based in foreign countries.

       This is consistent with respect to the Prime Minister’s National Relief Fund (PMNRF). PMNRF has also received foreign contributions as a public trust since 2011.