NEW DELHI :
The revenue department has appealed to all the officials to contribute one day’s salary every month till March 2021 to Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) fund, an official communication showed on Friday.
The communication said that those who do not wish to contribute could intimate the official in charge of disbursing salaries. Contributions to PM CARES fund are eligible for full deduction while calculating the taxable income. The government recently clarified that donations to the fund made through employers are also eligible for the tax benefit.
The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, made donations to the PM-CARES Fund fully eligible for deduction while computing the taxable income of the donor under Section 80G of the Act. Companies are eligible make such donations till the end of June and still can claim the deduction for their FY20 tax payments.
The government is trying to mobilise resources for relief work as the deep economic slowdown is set to depress revenue collections and the government’s ability to spend. Policy makers are also under pressure to announce a package to salvage companies slipping into bankruptcy due to the suspension of economic activities during the pandemic.