A Delhi-based firm has been tasked to audit the PM Cares Fund. Delhi-based chartered accountancy firm SARC & Associates will audit the Prime Minister’s Civil Assistance and Emergency Situation (PM Care) fund, according to Live Mint news. The independent auditor has been appointed for three years. As per the details given in the set of frequently asked questions on the fund, the PM Cares Fund will be audited at the end of this financial year.
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This appointment is even more important because critics have questioned the justification of this PM Cares Fund other than the Prime Minister’s National Relief Fund (PMNRF) for relief operations. Opposition parties have been consistently demanding more transparency about the use of funds from this fund. The FAQs posted on the fund’s website also state that it is being administered by two officials in the Prime Minister’s Office on an honorary basis.
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Tell that charitable trusts get income tax exemption and hence they need to get audited by chartered accountant and report to income tax department. For the last few years the rules governing charitable trusts have been tightened so that the money received is used for the intended purpose. The department has also raised the need for the disclosure of trusts in audit reports.
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Explain that the contribution made to the PM CARES fund is exempt from income tax.
The amount donated to the PM-Cares Fund will get 100% exemption from income tax. This relief will be available under section 80G of the Income Tax Act. Donations to the PM-Cares Fund will also be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013. At the same time, PM Cares Fund has also got exemption under FCRA and a separate account has been opened for receiving donations from abroad. This allows individuals and organizations based abroad to donate to the PM Cares Fund. It is similar to the Prime Minister’s National Relief Fund (PMNRF). The PMNRF has also received foreign contributions as a public trust since 2011.
The Prime Minister is the ex-officio Chairman of the PM CARES Fund and the Defense Minister, Home Minister and Finance Minister of the Government of India, are the ex-officio Trustees of the Fund. The Chairman (Prime Minister) of the Board of Trustees shall have the power to nominate 3 trustees to the Board of Trustees, who shall be eminent persons in the fields of research, health, science, social work, law, public administration and philanthropy. Any person appointed as a trustee shall act free of charge.