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Donors Asking Tax Certificates for Contributions to PM Relief Fund

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By Arpit Kulshrestha
Tax Certificates PM Relief Fund

The central government has declared all the monetary contributions to PM Relief Funds Tax-Free. These funds are raised to treat coronavirus patients and help the government fight against the outrage of this deadly disease. Such donations are exempt from tax under section 80G as per the central government but the donors have not yet received the necessary tax certificates. 
Several UPI platforms that cater to the transfer of these funds said that it is the responsibility of the trust that runs the PM relief fund to issue tax certificates to the donors and solve other donation related issues (if any).   

Two of the renowned money transfer sites PhonePe and Paytm are facilitating the users with upgraded features including the receipt feature for those contributing to PM relief fund through their platforms. On the other hand, Google Pay has instructed the donors to avail of the receipt directly from the government. While speaking with one of the newspapers, Google Pay spokesperson declared that they are just creating the platform for the organization that is receiving the donations so invariably the organization receiving the payments is responsible to disperse the receipts to the donors. So the tax receipt shall be obtained directly from the concerned organization, said GooglePay spokesperson.   

Contributions to PM CARES are Tax-Free

The Prime Minister's Fund for Civil Assistance and Relief in Emergencies or PM CARES Fund is the donation accounts created to treat the people already fighting with coronavirus. PM Narendra Modi himself is the chairman. Donors who have contributed to this fund need tax certificates while claiming deductions in their income tax returns on the 2.0 portal for FY 2020-21. 

Tax Certificate is Immediately Received by The Contributors

Generally, tax certificates are granted to people immediately but in this case, the opposite is happening, said a large audit firm. Apart from that the issue date of the certificate is also not known. Here having a helpline number or any email address will definitely help the donors.

Paytm’s Collection Till Now

So far Paytm has managed to accumulate the total funds of Rs. 60 Crore. Paytm has confirmed that it is trying its best to disperse the receipts to respective donors via the app itself. Paytm spokesperson said that the receipts shall be released on the official website of the government. Paytm is trying to make available the receipts of such donations of the app itself. But experts say that the problem arises with regards to the UPI interface as it does not collect the personal data required under tax laws similar to banks.    

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