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Although the government hasn’t revealed the details regarding the funds, the report has stated that Prime Premier Narendra Modi is the ex-officio chairman. The Minister of Defence, the Minister for Home Affairs, and the Minister of Finance are trustees ex-officio.
The Prime Minister is given the power to select trustees. They will be prominent individuals in health, research, social work, science and public administration, law, and charitable giving.
The fund is entirely funded by contributions from individuals or organisations and does not have a place within the Union Budget. Donations to the PM CARES Funds are tax-exempted under 80G benefits. Also, there are PMNRF Funds too as another funding scheme.
About Prime Minister’s National Relief Fund (PMNRF)
The Prime Minister’s PMNRF Fund was established by the former and later Premier Jawaharlal Nehru in January 1948. The primary purpose behind the fund was to aid those displaced in Pakistan in the aftermath of the country’s partition.
The funds currently gathered in the pool are used for immediate relief to the families of people who cyclones, earthquakes, or tsunamis have killed, floods, other natural catastrophes, and victims of significant accidents and violent community riots.
In addition, it is used to pay for medical treatments such as heart surgery, kidney transplants, acid attack, and cancer treatment for those in need.
The most significant benefit of this particular fund is it’s regularly audited. The annual audit provides a detailed overview of the fund’s financial health to each nation’s citizens.
What are PM Cares Funds?
Premier Shri Narendra Modi set up PM Cares Funds on March 27, 2020. The primary reason for the fund’s creation is to provide funds to tackle COVID-19, a deadly disease in India.
The full title of the PM Cares funds is “The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund.”
Since its creation, the PM Cares Fund is getting criticised for having no auditors for the fund. Due to political pressure, the central government has appointed an auditor to the fund.
Difference between PM Cares Funds and PMNRF Fund:
The purpose of the establishment
PM CARES: assist the most vulnerable people affected by COVID-19.
PMNRF: to assist people who were displaced from Pakistan during the partition.
Expenditure on
Pm care: To handle any emergency of any kind, such as COVID-19, the epidemic
PM NRF: to handle natural disasters, accidents, and the victims of riots and to provide medical treatments such as heart surgery, kidney transplants, acid attack, cancer treatment, etc.
Tax rebate
PMCARES: The whole amount given by the individual or institution is tax exemption.
PMNRF: All donors who have donated to PMNRF will be granted tax-free status under Section 80 (G) of the Income Tax Act 1961.
Audited by
PM Cares: During the meeting on March 23, 2020, The Trustees of the PM Care Fund decided to nominate the firm M/S SARC Associates Chartered Accountants, New Delhi, as Auditor of PM Care Fund for three years. The firm is led by Sunil Kumar Gupta, who also audits PM National Relief Fund. PM National Relief Fund also.
PM NRF: is monitored by an independent auditing firm that is not part of the government. At present, M/S SARC Associates Chartered Accountants is the auditor of PM NRF.
A government panel had previously suggested against the possibility of CSR contribution to the PMNRF Fund as a “regressive incentive.” The panel believed that the donations would amount to double the benefits of tax exemptions.
Who may contribute to the fund?
The fund receives contributions from people and organisations and cannot receive any budgetary assistance. Donations have been tax-free and can be counted toward the company’s Corporate Social Responsibility (CSR) requirements. The fund is also free of regulations under the Foreign Contribution (Regulation) Act 2010. It can accept foreign contributions, even though the Centre has declined foreign aid to deal with natural disasters, such as those caused by the Kerala floods. The Prime Minister is the chairman of this fund as a government representative. He can nominate three prominent individuals in the relevant areas on the Ministers of Defence, the Board of Trustees, Finance and Home Affairs are ex-officio Trustees of the Fund.
Conclusion
In the PM Cares Funds, the PM can nominate three distinguished individuals to the Board of Trustees. Ministers of defence, as well as home affairs and finance, are trustees ex-officio of the fund. The PMNRF Fund was run by a committee that included, in addition to both the PM and the deputy the finance minister, and the Congress president, as well as a member from Tata Trustees, a representative of Tata Trustees, and an industry representative. The committee voted on all expenditures made by the PMNRF.
An outside auditor examines PMNRF Fund expenditures. In the aftermath of public outrage, the PMO appointed an auditor for the PM Cares Funds.
