All you need to know about the tax benefit for corporates and individuals

To encourage the public to make contribution by sending the fund to the PM Cares fund in order to fight against COVID-19 pandemic, the centre has also decided that the donations made to PM CARES fund will become eligible to 100 percent tax deduction. It was announced by the PM, Narendra Modi last week.

Also, the last day to file income tax return for 2018-19 will be extended by three months and the due date is no June 30th.

Here are few points to note-

1- An official statement said- “The limit on deduction of 10 per cent of gross income shall also not be applicable for donation made to PM-CARES Fund.”

2- The statement said- “any person, including corporate, paying concessional tax on income of FY 2020-21 under new regime can make donation to PM-CARES Fund up to June 30 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21”.

3- Date for claiming the deduction under the chapter VIA-B of IT Act that includes section 80C, 80D, 80G has also been extended to June 30th, 2020. any donation made till then will become eligible to the tax deduction.