PM Cares fund
GS PAPER II: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context: Prime Minister orders setting up of 551 oxygen plants in hospitals from PM Cares fund
- These plants will be established in identified government hospitals in district headquarters in various States and Union Territories.
- An in-house captive oxygen generation facility will address the day-to-day medical oxygen needs of these hospitals and the district.
- In addition, the liquid medical oxygen (LMO) will serve as a “top up” to the captive oxygen generation.
What is PM CARES Fund?
- PM CARES Fund is a public charitable trust.
- 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.
Who are the Trustees of the PM CARES Fund?
- The Prime Minister is Chairperson (ex-officio) of the PM CARES Fund.
- Minister of Defence, Minister of Home Affairs and Minister of Finance, Government of India are ex-officio Trustees of the Fund.
- The Prime Ministers as the Chairperson of the Board of Trustees of PM CARES 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.
What are the Objectives of the PM CARES Fund Trust?
The primary objectives of the PM CARES Fund Trust are:-
- To undertake and support relief or assistance of any kind relating to a public health emergency or any other kind of emergency, calamity or distress, either man-made or natural, including the creation or upgradation of healthcare or pharmaceutical facilities, other necessary infrastructure, funding relevant research or any other type of support.
- To render financial assistance, provide grants of payments of money or take such other steps as may be deemed necessary by the Board of Trustees to assist the affected population.
- To undertake any other activity, which is not inconsistent with the above Objects.
What is the legal framework of PM CARES Fund?
- PM CARES Fund has been registered as a Public Charitable Trust.
- The trust deed of PM CARES Fund has been registered under the Registration Act, 1908
What are the responsibilities of the Trustees?
The Trustees are responsible for the following:
- Fulfilling the objects of the Trust;
- Managing the contribution process to ensure proper application of the Trust property;
- Preparing and submitting all filings, accounts and returns as required under applicable law.
How is the PM CARES Fund administered?
- The fund is administered on an honorary basis by a Joint Secretary (Administration) in the PMO as Secretary to the fund, who is assisted on honorary basis by an Officer of the rank of Director/Deputy Secretary (Administration) in the PMO.
- The Prime Minister’s Office provides such administrative and secretarial support to the Trustees for the management and administration of the Trust, as may be required by the Trustees.
What type of domestic donations are accepted in PM CARES Fund?
- 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.
What are the modes through which domestic donation can be made to PM CARES Fund?
Contributions can be made by following modes:-
- Net Banking (SBI and other commercial Banks)
- Card Payments – SBI ATM-cum-Debit Card, Other Bank Debit Cards, Credit Card, Prepaid Card, Foreign Card
- Other Payment mode: SBI Branch, NEFT/RTGS
- Contributions can also be made online through the dedicated portal – pmcares.gov.in as well as the portal of PMO i.e. pmindia.gov.in. One can also contribute through the portals of the collection banks.
- Further, cheque or demand draft drawn in favour of ‘PM CARES Fund’ can be sent to Under Secretary (Funds), PMO, South Block, New Delhi.
Are contributions towards the PM CARES Fund exempted from Income Tax?
- Yes, all contributions towards the PM CARES 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.
Is PM CARES Fund exempted from paying Income Tax?
- Yes, the fund is exempted from paying Income Tax as per Section 10(23)(c) of Income Tax Act, 1961.
Does contribution towards PM CARES Fund qualify as CSR expenditure?
- Yes, any contribution made to the PM CARES Fund by any Company or a PSU shall qualify as Corporate Social Responsibility (CSR) expenditure as provided under the Companies Act, 2013.
Who has the powers to formulate criteria for disbursal of funds held under PM CARES Fund?
- The Trustees of the PM CARES Fund have powers to formulate rules/criteria for carrying out any of the Objectives of the Trust.
Who audits the PM CARES Fund?
- PM CARES Fund is audited by an independent auditor.
- Trustees of the Fund during the 2nd meeting held on 23.04.2020 decided to appoint M/s SARC & Associates, Chartered Accountants, New Delhi as the auditors of PM CARES Fund for 3 years.
What is the statutory period by which the accounts should be audited?
- There is no statutory period prescribed for audit of the PM CARES under Income Tax Act. However, audit will be conducted at the end of the Financial Year.
Whether Foreign Donation is accepted in PM CARES Fund?
- PM CARES Fund has received exemption from operation of all provisions of the Foreign Contribution (Regulation) Act, 2010.
- Foreign Donation is accepted from individuals and organizations based in Foreign countries through Foreign Credit / Debit Cards and also through Wire Transfer/SWIFT following the link on Home page of PM CARES Fund portal.
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