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Contribution towards PM-CARES Fund to qualify as CSR spending

he Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund was constituted by the government earlier this week to receive charitable contributions to deal with emergency situations like the current coronavirus outbreak.

By: ENS Economic Bureau | New Delhi | Published: March 30, 2020 3:16:58 am
pm cares, pm cares coronavirus, coronavirus, pm modi coronavirus fund, covid 19, india coronavirus, indian express news The Ministry had earlier clarified that any expenditure undertaken by companies towards dealing with the virus outbreak, including for preventative healthcare, sanitation and disaster management, would count towards mandatory CSR expenditure. (File Photo)

Contributions by companies towards the PM-CARES Fund for emergency relief will count towards mandatory corporate social responsibility (CSR) expenditure, the Corporate Affairs Ministry clarified on Sunday. The Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund was constituted by the government earlier this week to receive charitable contributions to deal with emergency situations like the current coronavirus outbreak.

“The PM-CARES Fund has been set up to provide relief to those affected by any kind of emergency or distress situation. Accordingly, it is clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013,” said a notification by the Ministry.

Companies with a minimum net worth of Rs 500 crore, turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required to spend at least 2 per cent of their average profit for the previous three years on CSR activities every year. Prime Minister Narendra Modi is the chairman of the fund, while Defence Minister Rajnath Singh, Home Minister Amit Shah and Finance Minister Nirmala Sitharaman are among its members.

The Ministry had earlier clarified that any expenditure undertaken by companies towards dealing with the virus outbreak, including for preventative healthcare, sanitation and disaster management, would count towards mandatory CSR expenditure.

Here’s a quick Coronavirus guide from Express Explained to keep you updated: Are smokers at high risk form coronavirus? | Can Vitamin-C prevent or cure coronavirus infection? | What exactly is community spread of coronavirus? | How long can the Covid-19 virus survive on a surface? | Amid the lockdown, what is allowed, what is prohibited?

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