Income Tax Calculator: The earning individuals, who are donating in the PM CARES Fund to strengthen the Prime Minister Narendra Modi’s bid to fight against the Coronavirus, the Income Tax Department has decided to give some extra bonus on the COVID-19 donations made in the new financial year. The Income Tax Department has decided to give donors a choice to claim 100 per cent PM CARES Fund 80G deduction either in FY 2019-20 or in FY 2020-21, depending upon the convenience of the income taxpayers. The benefit can be claimed on the donations made in the PM CARES Fund from 1st April 2020 to 30th June 2020.
Speaking on the double benefit offered by the Income Tax Department for COVID-19 donations in PM CARES Fund Balwant Jain, a Mumbai-based tax and investment expert said, “Donations made to the PM CARES fund are eligible for 100 per cent tax deduction from your income without any limit. For donations made between 1st April 2020 and 30th June 2020 can be claimed for the year 2019-20 or 2020-21 as per your choice.”
Commenting on the Income Tax relaxation on donations in the PM CARES Fund Jitendra Solanki, a SEBI registered tax and investment expert said, “The Income Tax Department has taken a right decision as the majority of the taxpayers have already made-up their investment plans for the FY 2019-20 but due to the extension of date for the income tax return (ITR) filing till 30 June 2020, it will also help those who are still falling short of meeting the investments that attract tax exemption. So, those who have met their tax-saving investments can make sure that they can use the amount donated in PM CARES Fund in FY 2020-21 ITR while those who fail to meet tax-saving investment limits can use this in the current ITR.” He said that the income tax is 100 per cent exempted under PM CARES Fund 80G deduction law.
SOURCE: Zee Business