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PM CARES and PMNRF: Aim, Difference, Similarities and Tax Benefits | UPSC Economy Notes

Last Updated on Jul 27, 2023
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In India, the Prime Minister’s National Relief Fund (PMNRF) is a fund to assist those afflicted by natural and man-made calamities. It was established by Jawaharlal Nehru to assist the displaced people from Pakistan during Partition. Following the COVID-19 epidemic, the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) were established on March 28, 2020. It will be utilized for future relief efforts against the coronavirus pandemic and other pandemic-like events. 

PM CARES and PMNRF are important government initiatives which are important for General Studies Paper 1(Prelims) and General Studies III(Mains) examination in the UPSC.

In this article, You will learn all the meaning, features, and advantages of the PM CARES fund and PMNRF in full form in detail for the UPSC Exams.

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What is the PM CARES Fund?
  • The ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)’ has been established keeping in mind the need for a dedicated fund with the primary goal of dealing with any kind of emergency or distress situation, such as the COVID-19 pandemic.
  • On March 27, 2020, the PM CARES Fund trust deed was registered under the Registration Act, 1908. The PM CARES Fund details are yet to be public information but it is now a Public Charitable Trust.
  • The Prime Minister serves as the ex-officio Chairman of the PM CARES Fund, while the Ministers of Defense, Home Affairs, and Finance of the Government of India serve as ex-officio Trustees of the Fund.

Study in detail the Emergency Provisions of the Indian Constitution here.

What is PMNRF?
  • In January 1948, the Prime Minister’s National Relief Fund (PMNRF) was established to receive public contributions for the support of Partition refugees(displaced persons from Pakistan).
  • It is presently utilized to offer quick aid to the families of those who lost their lives in natural disasters, as well as victims of severe accidents and riots, as well as to cover medical expenditures for acid attack victims and others.
  • The PMNRF was initially managed by a committee composed of the Prime Minister and his deputy, the Finance Minister, the Congress President, a Tata Trustees representative, and an industry representative.
  • However, in 1985, the committee delegated full control of the fund to the Prime Minister, who now has total authority over fund disbursement.
  • Every year, the Prime Minister’s National Relief Fund is audited.

Difference between PM Care Fund and Prime Minister National Relief Fund

The Prime Minister’s Relief Fund and the PM CARES Fund differed significantly in many ways. PM CARES Fund has been established as a dedicated fund with the primary goal of dealing with any kind of emergency or distress situation, such as the COVID-19 pandemic while the Prime Minister’s National Relief Fund (PMNRF) was established in 1948 to receive public contributions for the support of Partition refugees (displaced persons from Pakistan).

Comparison PM CARES PMNRF
Purpose It is established to deal with any kind of emergency or distress situation, such as the COVID-19 pandemic. To assist individuals who were relocated from Pakistan during the partition.
Date of establishment 27 March 2020 January 1948
Chairman Prime Minister of India Prime Minister of India
Members The PM, Minister of Home Affairs, Finance Minister, and Defense Minister are members of the Trust. The PMNRF was initially managed by a committee composed of the Prime Minister and his deputy, the Finance Minister, the Congress President, a Tata Trustees representative, and an industry representative.
Expenditure incurred on To deal with any type of emergency, such as the COVID-19 outbreak. To assist victims of natural disasters, accidents, and riots, as well as for medical care such as kidney transplants, heart surgery, acid attack, and cancer therapy, among other things.
Tax rebate
  • Donations to the PM CARES Fund qualify for 80G benefits and are tax-free under the Income Tax Act of 1961.
  • Donations to the PM CARES Fund by any company or a PSU are deductible as Corporate Social Responsibility (CSR) expenses under the Companies Act of 2013.
Under Section 80 (G) of the Income Tax Act of 1961, all donors who gave to PMNRF will receive a full tax exemption.
Audited by The Trustees of PM CARES Fund voted to appoint M/S SARC Associates Chartered Accountants, New Delhi as Auditor of PM CARES Fund for three years at their meeting on March 23, 2020. Sunil Kumar Gupta leads this business, which also audits the PM National Relief Fund. It is audited by an independent auditor who is not affiliated with the government. Its auditors are currently M/S SARC Associates Chartered Accountants.
Donations/ Contributions The PM CARES Fund accepts voluntary contributions from people and groups as well as CSR contributions from businesses and PSUs (PSUs). Contributions coming from PSU budgetary sources are not, however, allowed. Additionally, it is free from the Foreign Contribution (Regulation) Act of 2010 and welcomes contributions from abroad. Only voluntary donations from organisations and individuals are accepted by the PMNRF (Prime Minister National Relief Fund). Contributions originating from the financial sources of the government or from the balance sheets of Public Sector Undertakings (PSUs) are not accepted.
CSR Activities Companies are permitted to designate their contributions under the Corporate Social Responsibility (CSR)programme when making donations to the PM Cares Fund. Neither the PMNRF nor the Chief Minister’s Relief Fund in states has access to the option of receiving uncapped corporate donations. In fact, the utilisation of corporate contributions to support government programmes was constrained by the prior CSR guidelines.
The utilisation of Funds A public health emergency or any other emergency, calamity, or distress of any kind, whether caused by a man-made disaster or a natural one, should be addressed and supported in any way possible. 

 

This includes building new healthcare or pharmaceutical facilities, upgrading existing infrastructure, funding pertinent research, or providing any other form of assistance.

A very large proportion of the funds stands committed to being utilized in a phased manner for various schemes announced by PM. 

 

The PMNRF provides financial assistance to needy patients for treatment of major diseases at Government/PMNRF empanelled hospitals to partially defray the expenses.

Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)

The Objectives of PM CARES

The key goals of the PM CARES Fund Trust are as follows:

  • To undertake and support relief or assistance of any kind relating to a public health emergency or any other type of emergency, calamity, or distress, whether man-made or natural, etc.
  • To give financial help, make donations of money, or take any other actions considered essential by the Board of Trustees to aid the afflicted people.
  • To engage in any other activity that is not incompatible with the preceding Objectives.

 Board Members of PM CARES

  • The Chairperson of the Board of Trustees (the Prime Minister) shall have the authority to appoint three trustees to the Board of Trustees who must be distinguished individuals in the fields of research, health, science, social work, law, public administration, and philanthropy.
  • The PM CARES board of directors consists of the following individuals:
    • Prime Minister
    • Finance Minister
    • Minister of Defense
    • Minister of Home Affairs

Tax Benefits

  • Donations to the PM CARES Fund qualify for 80G benefits and are tax-free under the Income Tax Act of 1961. Donations to the PM CARES Fund by any company or a PSU are also deductible as Corporate Social Responsibility (CSR) expenses under the Companies Act of 2013.
  • PM CARES Fund has likewise received FCRA exemption and has a separate account for collecting overseas donations. This enables the PM CARES Fund to accept donations and contributions from other countries.

Check out the Article Goods and Service Tax here!

Prime Minister’s National Relief Fund (PMNRF)

The Objectives PMNRF

  • PMNRF assists those impacted by natural disasters like floods, earthquakes, and cyclones, as well as victims of riots and accidents.
  • The PM NRF fund is also used to help persons in need with medical treatments such as kidney transplants, heart surgery, acid attacks, and cancer therapy.

Board Members of PMNRF

The composition of Board Members of PMNRF is listed below.

  • Prime Minister
  • Deputy Prime Minister
  • President of Indian National Congress
  • Finance Minister
  • A representative of the Tata Trustees
  • A member of industry and commerce, as decided by the Federation of Indian Chamber of Commerce

Tax Benefits

  • All contributions to the Prime Minister’s National Relief Fund (PMNRF) are eligible for a full tax deduction under Section 80G of the Income Tax Act of 1961.

Check the detailed Notes on Bank Board Bureau Here.

Also, study about Black Money here.

Similarities between PMNRF and PM CARES Fund
  • Parliament does not have to approve spending from the PM CARES Fund or the PMNRF.
  • Donations to both the PMNRF and the PM CARES Fund are tax-deductible under Section 80G.
  • Funds from PM CARES and PMNRF cannot be used without the Prime Minister’s approval.
  • Both PMNRF and PM CARES are not funded by the government.
  • PMNRF and PM CARES are both set up as trusts.
  • Foreign contributions are accepted by both PM CARES and PMNRF.
  • The Comptroller and Auditor General (CAG) do not audit PM CARES or PMNRF.
  • PMNRF is not covered by the Right to Information Act (RTI).

Who may contribute to the fund?
  • Anyone may assist the relief efforts for the Coronavirus pandemic by donating to the PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund).
  • Donations to the fund are tax deductible under section 80G of the Income Tax Act of 1961.

Know more about the Prevention of Money Laundering Act (PMLA)

In this article, we analyze the Differences and Similarities between PM CARES and PMNRF. To study more topics from the Indian Economy for UPSC, with UPSC Coaching, download the Testbook App now!

PM CARES और PMNRF हिंदी में भी पढ़ें!

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PMNRF and PM CARES Fund FAQs

PMNRF focuses on natural catastrophes and calamities such as cyclones, and earthquakes, floods, and tsunamis. The PMNRF money is also used to help victims of acid attacks, cancer treatments, kidney transplants, and other causes.

The Prime Minister's National Relief Fund (PMNRF) is primarily utilized to render immediate relief to families of those affected by natural calamities like floods, cyclones and earthquakes etc. and to victims of the major accidents and riots.

The PM CARES Fund was established as a public charity trust "bearing in mind the necessity for a dedicated national fund with the primary goal of dealing with any form of emergency or distress situation."

The Prime Minister is the chairman of the PMNRF fund, and he is aided by a joint secretary.

The families of those affected by natural calamities like floods, cyclones and earthquakes etc can receive the money from the Prime Minister's National Relief Fund (PMNRF).

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