Section 80G and PM CARES Fund: Why This Donation Gets 100% Deduction Without Any Limit
TL;DR
- The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES) is notified under Section 80G(2)(a)(iiia), giving donors a 100% deduction with no qualifying limit ceiling.
- Section 80G is available only under the old tax regime. If you opt for the new regime under Section 115BAC, you cannot claim this deduction at all.
- Cash donations above Rs. 2,000 are disallowed. Use UPI, net banking, NEFT, IMPS, RTGS, cheque or demand draft to keep the deduction intact.
- The receipt must show donor name, PAN of the donee, registration details, mode of payment and the unique ARN (Donation Reference Number).
- You must report PM CARES donations in Schedule 80G of your ITR for AY 2026-27, otherwise the deduction will be auto-disallowed during processing under Section 143(1).
What this means in plain terms
Most people assume any donation to a government fund is fully tax-deductible. That is not how Section 80G works. The Income Tax Act sorts eligible donees into four buckets — 100% without limit, 100% with limit, 50% without limit, and 50% with limit. PM CARES sits in the most generous category. Every rupee you donate is deductible against your gross total income, and there is no ceiling tied to your salary or business income.
The catch is the regime choice. Most salaried people in India today default to the new regime because the slabs look lower. But the new regime under Section 115BAC strips away almost all Chapter VI-A deductions, including Section 80G. If you intend to donate large sums to PM CARES and claim the deduction, you must consciously stay in or switch back to the old regime when filing your ITR for AY 2026-27.
How PM CARES qualifies under Section 80G
Notification under Section 80G(2)(a)(iiia)
PM CARES was set up on 27 March 2020 and was notified by the Central Board of Direct Taxes as eligible for 100% deduction without qualifying limit. The same treatment applies as the Prime Minister's National Relief Fund. This puts it in the highest tier of donee categorisation.
No 10% gross total income ceiling
For donations with a "qualifying limit", deduction is capped at 10% of your gross total income after other deductions. PM CARES skips that ceiling entirely. If your gross total income is Rs. 15 lakh and you donate Rs. 4 lakh to PM CARES, the full Rs. 4 lakh reduces your taxable income.
Same treatment for individuals, HUFs and companies
Any assessee — individual, Hindu Undivided Family, partnership firm or company — can claim the deduction. For companies, donations to PM CARES are also recognised as Corporate Social Responsibility spending under Schedule VII of the Companies Act, 2013.
Payment modes that keep your deduction intact
Why Rs. 2,000 is the cash ceiling
Section 80G(5D) disallows any deduction for cash donations above Rs. 2,000. This was tightened from the earlier Rs. 10,000 limit by the Finance Act, 2017 to push transparency. For PM CARES, the official portal at pmcares.gov.in does not even accept cash — only UPI, internet banking, debit card, credit card, NEFT, RTGS and cheque or demand draft.
Direct salary deduction by employer
If your employer collects donations through salary and forwards them to PM CARES, you can still claim the deduction yourself. Ask for a consolidated certificate from your employer showing your contribution, the unique donation reference number and the date of remittance to the fund.
Foreign currency contributions
PM CARES is also exempt from FCRA registration requirements, meaning NRIs and foreign nationals can donate. However, only resident Indians filing Indian tax returns can claim the Section 80G deduction. An NRI with only foreign income would not benefit from the deduction.
Filing the claim in your ITR
Schedule 80G of ITR-1, ITR-2, ITR-3 or ITR-4
Every ITR form has a dedicated Schedule 80G. You enter the name of the donee (Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund), the donee PAN (AAETP3993P), address, donation amount and qualifying percentage (100% without limit).
Use the unique ARN from your receipt
From AY 2022-23 onwards, the Income Tax Department mandated that every Section 80G donation receipt must carry a system-generated Donation Reference Number (ARN). This number flows into your AIS and pre-populates Schedule 80G. If your receipt is missing the ARN, contact the trust to reissue it.
Reconciliation with the Annual Information Statement
The donee files Form 10BD with the department reporting each donation. The data flows into your AIS as "Donations to political party or institution". Always cross-check that the amount in your ITR matches the AIS to avoid a CPC intimation under Section 143(1).
A real example
Take Aditya, 41, Rs. 32L CTC, Mumbai. He works as a senior product manager and donated Rs. 1,50,000 to PM CARES during a natural disaster relief appeal in October 2025. He is choosing between the old and new regime for AY 2026-27.
Step 1: His gross salary is Rs. 32,00,000, with Section 80C of Rs. 1,50,000, Section 80D of Rs. 50,000 and home loan interest under Section 24(b) of Rs. 2,00,000.
Step 2: Under the old regime, taxable income before 80G is 32,00,000 minus 50,000 standard deduction minus 1,50,000 (80C) minus 50,000 (80D) minus 2,00,000 (24b) = Rs. 27,50,000.
Step 3: PM CARES donation of Rs. 1,50,000 reduces this to Rs. 26,00,000. At 30% marginal rate plus 4% cess, the donation saves him Rs. 46,800.
Step 4: Under the new regime, the same Rs. 1,50,000 donation would have given him zero deduction, because Section 80G is disallowed. He would also lose 80C, 80D and 24(b) on a self-occupied property.
Step 5: Aditya stays in the old regime, files using ITR-2, enters PM CARES in Schedule 80G with the ARN from his receipt, and validates that the Rs. 1,50,000 entry matches his AIS.
What to do this week
- Locate every donation receipt from FY 2025-26 and confirm each one carries the ARN, donee PAN and registration number.
- If you donated to PM CARES through your employer's CSR or payroll programme, request a consolidated 80G certificate showing your individual contribution.
- Open your AIS at incometax.gov.in and verify that the donation amount and donee match your records before filing.
- Decide your regime choice deliberately — if your 80G donations plus 80C, 80D and HRA exceed the break-even threshold, old regime usually wins.
- Run the 6-step assessment at https://myfinancial.in to see your old-vs-new regime delta, unused deductions, and insurance gap in under 10 minutes.
FAQ
Can I claim Section 80G for PM CARES under the new tax regime?
No. Section 115BAC(2) explicitly disallows deductions under Chapter VI-A except Section 80CCD(2) and Section 80JJAA. PM CARES donations get zero deduction under the new regime, even though the fund itself is fully tax-exempt.
Is there an upper limit on how much I can donate to PM CARES?
Section 80G itself imposes no upper limit on the deduction for PM CARES because it falls under the "100% without qualifying limit" category. Practically, you can only deduct up to your gross total income — you cannot create a tax loss with donations.
What if I lost my donation receipt?
Visit pmcares.gov.in and use the "Reprint Receipt" option with your transaction ID, mobile number or email. The reprinted receipt carries the same ARN. Without a valid receipt and ARN, the deduction cannot be claimed.
Does PM CARES donation count as my employer's CSR?
Yes. The Ministry of Corporate Affairs clarified through a notification dated 28 March 2020 that contributions to PM CARES qualify as CSR spending under Schedule VII of the Companies Act, 2013. The company gets CSR credit and the employees do not get any personal Section 80G benefit on such corporate spending.
Can I split one large donation across two financial years?
The deduction is claimed in the year the donation is actually paid, not the year it is pledged. To claim deductions in two years, make two separate payments, each with its own receipt and ARN, dated in the respective financial years.
Are donations through credit card EMI eligible?
Yes, provided the full payment is processed in your name and the receipt is issued in your PAN. The fact that you are repaying your card in EMIs does not affect the deduction — what matters is when the donation reaches the fund.
Do I need to attach the receipt with my ITR?
No physical attachment is required for online ITR filing. Keep the receipt and ARN in your records for at least seven years in case of a notice under Section 142(1) or scrutiny under Section 143(2).
Sources
- Income Tax Department, Section 80G: https://incometaxindia.gov.in
- PM CARES Fund official portal: https://pmcares.gov.in
- CBDT notification on PM CARES eligibility (March 2020): https://incometax.gov.in
- Ministry of Corporate Affairs clarification on CSR: https://www.mca.gov.in
- Finance Act 2017 cash donation amendment: https://incometaxindia.gov.in
This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.