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The Prime Minister National Relief Fund (PM NRF) was set up in 1948 to help the people who were displaced from Pakistan at the time of Partition. It was established by Prime Minister Jawaharlal Nehru. On the other hand, PM Cares Fund was established by Prime Minister Narendra Modi on 27 March 2020. The main objective behind PM Cares Fund establishment is to arrange finance to deal with COVID-19 Pandemic in India. Find out all the information related to PM Cares Fund & PM National Relief Fund in the post below.
Prime Minister National Relief Fund
As told earlier, The PMNRF was established by Prime Minister Jawaharlal Nehru in January 1948 to assist displaced persons from Pakistan, according to information provided by the PMNRF.In 1973, the entire management of PMNRF was entrusted to the Prime Minister. No change has been made since then in the PMNRF and even today it is recognized as a Trust and managed by the Prime Minister being operated from the Prime Minister’s Office (PMO). This fund now provides assistance to persons affected by calamities such as floods, earthquakes and cyclones and to the victims of riots and accidents. PM NRF fund is also used for medical treatment like kidney transplants, heart surgery, acid attack, and cancer treatment of people who are in need. Prime Minister National Relief Fund is audited every year. The yearly audit provides a clear picture of the fund’s financial condition to every citizen of the country.
Board Members
The PMNRF is a trust consisting of the following committee:
- Prime Minister
- Deputy Prime Minister
- President of the 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 donations towards the Prime Minister’s National Relief Fund (PMNRF) are notified for 100% deduction from taxable income under Section 80G of the Income Tax Act,1961.
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PM Cares Fund
The PM Cares Fund has been established by the current Prime Minister Shri Narendra Modi on 27 March 2020. The main objective behind its establishment to undertake and support relief or assistance of any kind relating to a public health emergency or any other kind of emergency, calamity or distress, either man-made or natural, including the creation or upgradation of healthcare or pharmaceutical facilities, other necessary infrastructure, funding relevant research or any other type of support. PM CARES stands for The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund. Earlier there was no auditor for the fund. Now due to political pressure, the government has appointed an auditor for PM Cares Fund that will provide a clear picture of the funds.
Board Members
The Chairperson of the Board of Trustees (Prime Minister) shall have the power to nominate three trustees to the Board of Trustees who shall be eminent persons in the field of research, health, science, social work, law, public administration and philanthropy. The PM Cares has the following members on its board:
- Prime Minister
- Finance Minister
- Minister of Home Affair
- Minister of Defence
Tax Benefits
Donations to PM CARES Fund qualifies for 80G benefits for 100% exemption under the Income Tax Act, 1961. Donations to PM CARES Fund also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
PM CARES Fund has also got exemption under the FCRA and also have a separate account for receiving foreign donations. This helps PM CARES Fund in accepting donations and contributions from foreign countries.
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Difference between PM Care Fund and Prime Minister National Relief Fund
- Prime Minister National Relief Fund
| Comparison | PMNRF |
|---|---|
| Purpose of establishment | PM NRF fund provides assistance to people affected by calamities such as floods, earthquakes and cyclones and to the victims of riots and accidents. |
| Date of establishment | January 1948 |
| Chairman | Prime Minister of India |
| Board Members | Congress President and representative of FICCI and Tata Trusts. |
| Tax rebate | Contributors who donated to PMNRF gets 100% tax exemption. |
| Auditor | SARC Associates Chartered Accountants is its auditors. |
| Current Balance | Rupee. 3800 crores. |
- PM CARES
| Comparison | PM CARES |
|---|---|
| Purpose of establishment | To help people affected by COVID-19 |
| Date of establishment | 27 March 2020 |
| Chairman | Prime Minister of India |
| Members | The Home Minister, Finance Minister and Defense Minister are members of the Trust. Prime Minister is entitled to nominate 3 other eminent personalities. |
| Tax rebate | The amount that donated will come under the tax exemption. |
| Auditor | SARC Associates Chartered Accountants, New Delhi |
| Current Balance | Rs.9,677.9 crore. |
Similarities Between PMNRF and PM CARES
PMNRF and PM CARES are similar in following ways
- Both the funds accept voluntary contributions by individuals and organizations and they are neither financed by the Government nor do they get any budgetary support.
- Both the funds are the creation of Prime Minister in his ex-officio capacity and do not come under the purview of the Government.
- Both the funds are created for similar causes i.e. charity and relief to the citizens.
- No money from the fund is used in any Government projects.
