Donations to PM Cares fund is exempted U/ 80 (G)

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This discussion clarifies whether donations to the PM Cares Fund are eligible for tax exemption under Section 80G. While the Central Board of Direct Taxes (CBDT) has confirmed that employees can claim this deduction, some employers may initially refuse to consider it before tax computation. The advice provided suggests obtaining a certificate from your employer for the donated amount to ensure it's considered when issuing Form 16, as employers are obligated to do so.

Hiren Joshi

Hiren Joshi (Querist)
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11 September 2020 Dear All,

I would like to get confirmation that donation to PM Cares Fund is considered as exemption under 80G; hence it would be considered the same way by the employer. Hence employer should deduct tax after exempting the donation amount from my taxable salary. However I find it is not appropriate and I believe there is something to support & encourage donation to PM Cares fund. Please help.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2020 The Central Board of Direct Taxes (CBDT) clarified that an employee making a donation to the PM-CARES fund through the employer can claim income tax deduction under Section 80G on the basis of Form 16 issued by the employer

Hiren Joshi

Hiren Joshi (Querist)
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11 September 2020 Sir,
Thanks for your response. But what should I do when my employer / account teams refuses to consider the donation before computing my tax liability? They are asking me to claim refund, after filing ITR next year. That is not feasible for me. Please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2020 In such a case it's feasible for you to claim refund in ITR.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 September 2020 For claiming refund, seek a certificate from employer for the amount donated.
Inference - CBDT circular 2/2005 dated 12-01-2005.

Ps :- in such cases, employer is duty bound to consider donation while deducting tax and issuing form 16. Inference :- CBDT circular 4/2020 dated 16-01-2020.

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