The government has established the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) to deal with any crisis or misery posed by the COVID-19 pandemic.

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What is the PM CARES Fund?

Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) is a general charitable trust. The need for a dedicated fund has been specified to deal with any crisis or distress condition, like the one posed by the COVID-19 pandemic, and deliver comfort to the affected.

About the Fund

• The fund is a general charitable trust with the Prime Minister as its Chairman. Other Associates include the Home Minister, Defence Minister and the Finance Minister.
• The fund helps micro-donations, letting many people donate with the least sects.
• The fund will fortify disaster management powers and encourage analysis on saving citizens.
• Contributions to the Fund are qualified for 100% tax exemption under Section 80G of the Income Tax Act and are allowed as CSR expenditure under the Companies Act 2013.
• PM CARES Fund has also been exempted under the Foreign Contribution Regulation Act (FCRA), and an individual account for accepting foreign contributions has been unlocked. 
• This even includes discussions about the Prime Minister's National Relief Fund (PMNRF). 
• PMNRF has also acquired foreign grants as a public trust since 2011.

Objectives

• To support and undertake assistance or relief of any kind connecting to a public health crisis or any other type of crisis, misfortune or misery, either unnatural or natural, including the upgradation or creation of pharmaceutical facilities or health care, other essential infrastructure, funding suitable analysis or any other type of help.
• To generate financial services, supply assistance with money payments, or take other efforts considered indispensable by the Board of Trustees to help the affected people.
• To embark on any other action that is not incompatible with the above Entities.

Members

• The Prime Minister acts as the ex-officio Chairperson, with the Home Minister, Defence Minister and Finance Minister as ex-officio trustees. 
• The Chairperson of the Board of Trustees (the PM) can select 3 trustees to the Board of Trustees. 
• Any trustee designated shall function on non-profit grounds.
• The PMO delivers the Trustees with organisational and secretarial licenses for the Trust's management and leadership as required.

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The Prime Minister of India is the ex-officio Chairperson of the PM CARES Fund and the Minister of Home Affairs, Minister of Defence, and Minister of Finance of the government of India. They are the ex-officio Trustees of the Fund. As the Chairperson of the Board of Trustees of the PM CARES Fund, the Prime Minister has appointed Shri Justice K.T.Thomas (Retd.) and Shri Kariya Munda as two trustees to the Board.

The Board of Trustees of the PM CARES Fund has also appointed the following to the Advisory Board of the Trust:

1. Shri Rajiv Mehrishi
2. Shri Anand Shah
3. Smt. Sudha Murthy

What are the responsibilities of the Trustees?

The Trustees are liable for the following:

• Fulfilling the entities of the Trust.
• Handling the contribution method to confirm the correct application of the Trust property.
• Drafting and presenting all filings, reports and returns as needed under relevant law.

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Performance Till Now

• The Ministry of Corporate Affairs has explained that donations by firms towards the PM CARES Fund will count towards compulsory Corporate Social Responsibility (CSR) expenses.
• Under the Companies Act 2013, firms with a lowest net value of Rs 500 crore, turnover of Rs 1,000 crore, or net gain of Rs 5 crore must pay at least 2% of their average earnings for the last three years on annual CSR activities.
• The term "Corporate Social Responsibility" in general can be directed to as a corporate endeavour to consider and take accountability for the firm's effects on the circumstances and social welfare.

Existing Equivalent Fund: Prime Minister's National Relief Fund (PMNRF)

• This fund was created in 1948 by Prime Minister Jawaharlal Nehru to help displaced individuals from Pakistan. The fund is used mainly to tackle natural mishaps like cyclones, floods and earthquakes. The fund is also utilised to assist with medical remedies like cancer treatment, kidney transplantation and acid attacks.
• The fund consists of public donations and does not get any budgetary help. It receives voluntary contributions from individuals, associations, trusts, firms, and organisations.
• Contributions towards PMNRF are reported for 100% removal from taxable earnings under section 80(G) of the Income Tax Act, 1961.

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