gtag('config', 'UA-154374887-1');

Section 80G deduction for Donation to West Bengal State Emergency Relief Fund

section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund

The Government of West Bengal has constituted a relief fund namely West Bengal State Emergency Relief Fund (WBSERF) under the umbrella of Chief Minister Relief Fund for the purpose of combating COVID-19 or Corona disaster.



    Introduction


    The government of West Bengal has constituted a relief fund namely West Bengal State Emergency Relief Fund (WBSERF) vide an Order No.-50-SB(SM)-20 dated 23.03.2020 exclusively for the purpose of combating COVID-19. It is further clarified that this emergency relief fund will be under the overall umbrella of the Chief Minister’s Relief Fund. It is a temporary fund and will cease to operate after the emergency is over.  

    A separate special fund is created so that additional resources are quickly mobilized to cope up with the situation and to provide immediate relief. The fund is created with an initial corpus of Rs. 200 crore.

    Chief Minister Mamta Banerjee herself in her individual capacity contributed R. 5 Lakh to the West Bengal State Emergency Relief Fund in an attempt to support the country's efforts in fighting the COVID-19. [Source:www.business-standard.com]

    Almost all the state government websites flashing messages of the government's appeal to donate generously to the fund. 

    "The West Bengal State Government Appeals ALL to contribute in West Bengal State Emergency Relief Fund and assist the State in prevention and control of situation arising out of unforeseen emergencies like COVID-19 (CORONA)", the message reads.

    About West Bengal State Emergency Relief Fund


    The Government of West Bengal vide Order No. 50-SB(SM)-20 dated 23.03.2020 has constituted a fund namely ‘West Bengal State Emergency Relief Fund’ or WBSERF.

    The order states that the State Government is required to take urgent steps to provide relief and assistance for combating emergencies which are not related to natural disasters. In order to effectively combat these unforeseen emergencies, it is decided to create “The West Bengal State Emergency Relief Fund” so that additional resources are quickly mobilized to cope up with the situation and to provide immediate relief.

    The fund is established for the following purposes-

    (i) to provide relief to the people affected by emergency situations.

    (ii) to assist the State Government for creation/upgradation of infrastructure and other logistics to cope with the emergency.

    (iii) to provide funds for transportation and rehabilitation for persons affected by the emergency.

    (iv) to provide fund for mass awareness among the public about the emergency and ways to prevent it.

    (v) to provide funds for R&D/development of newer methods/techniques for effectively coping with the emergency.

    (vi) any other aspects related to prevention and control of situation arising out of emergency.

    Presently, it has been decided to use the funds from the WBSERF exclusively for the purpose of combating COVID-19.

    The relief fund will receive funds in cash or in kind from the following sources-

    (i) Donations/contributions from Charitable Institutions/ Organizations/Trusts and individuals.

    (ii) Contribution from the State and Central Public Sector Companies.

    (iii) Contribution from the Private Sector Companies.

    (iv) Any other source as may be deemed appropriate.

    The amount for allocation for specific purposes shall be decided by a Committee to be known as the West Bengal State Emergency Relief Fund Management Committee. The Managing Committee shall comprise of the following –

    i. Chief Secretary to the Government of West Bengal, – Chairman

    ii. Secretary to the Government of West Bengal, Finance Department – Member will act as convener,

    iii. Secretary to the Government of West Bengal, Home Department – Member

    iv. Secretary to the Government of West Bengal, Disaster Management and Civil Defence Department – Member

    The Committee shall have the power to determine its own procedure.

    A dedicated Bank Account shall be opened for the purpose of receiving fund. The fund will be audited by a Chartered Accountant firm empanelled by the Accountant General, West Bengal.

    The Joint Secretary, Finance is the Nodal Officer for managing the contributions received in the fund.

    This emergency relief fund will be under the overall umbrella of the Chief Minister’s Relief Fund. It is a temporary fund and will cease to operate after the emergency is over. 

    Deduction under section 80G for Donation to West Bengal State Emergency Relief Fund


    West Bengal State Emergency Relief Fund is a special fund where all the contributions will be utilized for combating the fight against the outbreak of COVID-19 pandemic. Since the fund is a part of the Chief Minister’s Relief Fund, it is clarified that the tax benefit of deduction under section 80G for making donations will be the same as available for making donations to the Chief Minister’s Relief Fund.  The donation or contribution made to West Bengal State Emergency Relief Fund is entitled for 100 % exemption from Income Tax under Section 80G of the Income Tax Act, 1961. In other words, the Contribution to this fund entitles the donor to claim 100% deduction under section 80G of the Income Tax Act.

    Donation to Chief Minister’s Relief Fund prescribed in section 80G(2) qualifies for 100 per cent deduction from the Gross Total Income of the assessee without any limit of 10% of adjusted Gross Total Income.

    The Permanent Account Number of the Chief Minister’s Relief Fund is AAAAC6443N. Since West Bengal State Emergency Relief Fund is a part of Chief Minister’s Relief Fund, it has no separate PAN.

    The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 has relaxed certain provisions of the Income Tax Act. In respect of savings and investments, the date is extended up to 30.06.2020. In other words, any exemption or deduction can be claimed in the FY 2019-20 itself even if the same is paid or invested after 31st March 2020 but within 30.06.2020.

    It may be noted that the end date of June 30, 2020 is subject to change. The government may notify a further date which will depend upon the circumstances and status of lockdown in the country at that time.

    The date for claiming an exemption for donation under section 80G also gets extended by 30.06.2020.

    As the date for claiming deduction u/s 80G under IT Act has been extended up to 30.06.2020, the donation made up to 30.06.2020 shall also be eligible for deduction from income of FY 2019-20. Hence, any person including corporate paying concessional tax on income of FY 2020-21 under new regime can make donation to West Bengal State Emergency Relief Fund up to 30.06.2020 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21.  

    Consolidated donation by the employer on behalf of employees


    In cases where employees make donations to the West Bengal State Emergency Relief Fund through their employers, it is not possible for such funds to issue a separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf - Circular No. 2/2005, dated 12-1-2005


    However, it is required to be seen how the practice will hold good when there is an amendment brought in by the Finance Act, 2020 which provides for allowability of deduction u/s 80G based on the online amount of donation in Form 26AS.

    Deduction for donation to West Bengal State Emergency Relief Fund under the new tax regime - Section 115BAC


    Finance Act, 2020 has introduced a new section 115BAC which gives an option to an individual or a HUF to pay taxes at concessional rates compared to the existing rate of taxes. However, in the new tax regime under section 115BAC, no deduction is allowed under section 80G (in fact under any section which falls under chapter VI-A). Hence, if an individual opts to pay tax as per the new tax regime he will not get any benefit of a donation to West Bengal State Emergency Relief Fund. But remember, the new tax regime is applicable from AY 2021-22. For FY 2019-20 or AY 2020-21, the old tax regime prevails and hence any contribution or donation to West Bengal State Emergency Relief Fund till 30.06.2020 can be claimed as a deduction under section 80G for AY 2020-21.

    Further, a domestic company which opted to pay concessional rate of tax under section 115BAA and section 115BAB is allowed to claim deduction under section 80G by the Finance Act, 2020. This is applicable for FY 2019-20 (or AY 2020-21). Form AY 2021-22, such a company cannot claim deduction under section 80G as per amendment by Finance Act, 2020. Donation to West Bengal State Emergency Relief Fund by such company is also available to it if the same is made by 30.06.2020. 

    Contributions to West Bengal State Emergency Relief Fund qualifies for CSR expenditure


    Further, contributions to this fund by the companies will qualify as CSR expenditure. The Ministry of Corporate Affairs vide a Circular Dated 23.03.2020 clarified that spending of CSR funds on various activities related to COVID-19 is eligible CSR activity.

    Bank Account Details West Bengal State Emergency Relief Fund


    Citizens and organisations can go to the website of WBSERF and donate to the fund using the following details:

    Account Details
    Account Name
    West Bengal State Emergency Relief Fund
    Name of Bank & Branch
    ICICI Bank Ltd., Branch: Howrah
    Account Number
    628005501339
    IFSC Code
    ICIC0006280
    MICR Code
    700229010
    SWIFT Code
    ICICINBBCTS
    UPI ID
    wbs.erf@icici
    Online Modes of payments
    Debit Cards and Credit Cards
    Internet Banking
    UPI (BHIM, PhonePe, Paytm, Others)
    RTGS/NEFT


    Micro-donations accepted in WBSERF


    The WBSERF also accepts micro-donations. It means even a person of small means can show his gratitude towards the nation and can pay even a smaller amount which to the extent of his financial capability can be paid. A donation of a small amount of say Re. 1 can be made. It is seen that in the past many children have contributed a smaller amount. Such small contributions make big differences.

    How to make a Contribution or Donation to the West Bengal State Emergency Relief Fund

    The fund has a dedicated website where donations can be made to WBSERF. The website also states that the West Bengal Government appeals ALL to contribute generously to the West Bengal State Emergency Relief Fund and assist in combating COVID-19 (CORONA).

    The contribution can be made through Online Payment / NEFT / RTGS / UPI / Cheque / DD. 

    One can also pay through QR code by scanning the QR Code from the fund’s website.

    The fund allows a donor to make contributions in ‘Kind’ also. However, do remember that no income tax deduction u/s 80G is available in case donation is made in kind. One needs to contact the fund’s official for contribution in kind in the given email-id.

    One can deposit cash into the bank account of the fund after filling the details in the online form in case donors have no net banking facility. Such donations, after filling the details in the online form, can be deposited by cheque also in lieu of cash.

    Guide to Payment by Online/Cheque/Cash/Card etc to WBSERF


    Step 1: Visit the official website of the fund.

    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund


    Step 2: Click on the ‘Online Payment’.

    Step 3: Page will be redirected to ICICI Bank's eazypay page.

    Step 4: A form will display to enter the donor status viz. Individual, Company, etc. and where your name, address, PAN, email, mobile number, etc are required to be filled in. In this form, the 'Amount of Donation' to the fund is required to be entered.
    Fill the form appropriately and correctly.
    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund
    After filling the form, click on ‘Show Details’.

    You will receive an OTP message (SMS) on the given mobile number. Put the OTP in the space provided in the form and then click ‘Submit’.
    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund

    Step 5: A confirmation page will be shown. If the details are correct, then click on ‘Pay Now’, else click ‘Back’ to go back to the form for necessary correction. Further, don’t forget to click ‘I read and accept Terms & Conditions’. The ‘Terms & Conditions’ can be read on clicking the hyperlink.

    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund


    Step 6: In the next page, payment options or mode will be available viz. Debit Card, Credit Card, Net Banking, UPI, etc. Select the appropriate mode and pay accordingly. Those who wish to deposit manually in the bank should select 'Cash'/'Cheque/DD'. These two methods attract bank charges in the form of 'convenience fee'. Other online banking methods have no charges.

    A challan will be generated and take the challan with a cheque/cash to any ICICI Bank branch. PAN is mandatory in case cash deposit is Rs. 50,000 or more.

    After selecting the method of payment, click on 'Proceed Now' to pay or 'Back' to go back to the preceding page(s).
    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund

    Step 7: After the successful payment, an acknowledgement will be displayed. Save the same for records. You will also receive an SMS in the given mobile number with the transaction reference ID.

    How to download or re-generate Acknowledge Receipt


    The website of WBSERF gives an option to regenerate the acknowledgement receipt in case one has lost the original one.

    However, do remember that there is a delay in getting data on successful payment from Bank. It may take 2 days or even more after successful payment to reflect the data in this portal.

    Step 1: Visit the official website of the fund.

    Step 2: Click on the ‘Download Acknowledgement Receipt’.

    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund

    Step 3: A new page will open. Fill the requisite details.

    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund

    You will get the acknowledgement receipt.

    How to pay by scanning the QR Code


    Payment by scanning the QR code is very simple and fast. You need a UPI App like BHIM to use the feature.

    Step 1: Visit the official website of the fund. The QR Code is given there.

    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund


    Step 2: Open the BHIM App from your mobile. Activate the scanner. Bring the mobile near to the screen of the computer or laptop and focus on the QR code image.

    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund

    Step 3: The UPI app will capture the necessary data. Fill the amount in the mobile app and pay. Tap 'Confirm'. Enter Transaction PIN etc when asked for and then pay.

    section-80g-deduction-for-donation-to-west-bengal-state-emergency-relief-fund

    A message will be displayed after the successful payment. An SMS will also come on the mobile number mapped with the bank account.

    Step 4: Generate the Acknowledgement Receipt as stated above from the website after 2-3 days.



    Get all latest content delivered straight to your inbox
    Sociliaze with Us

    Post a comment

    0 Comments