New Delhi: On March 28, Prime Minister Narendra Modi’s office, started the PM CARES fund. The PM announced about the fund thru’ his twitter account which was followed by several celebrities donating crores for the cause. But how far is the Fund legal ?
Historian Ramachandra Guha and Congress leader and MP Shashi Tharoor questioned PM CARES (Citizens Assistance and Relief in Emergency Situations) fund’s transparency specially when PMNRF displays a balance amount of Rs.3,800.44 Crore.
Advantages of public charity fund
The advantage of establishing a public trust fund is:
- It is exempted from taxes, besides preserving the value of the asset while avoiding the capital gains tax you would incur if you sold it in your name.
2. If you need income but your assets don’t produce any, you can put these assets into a charitable trust, sell them without incurring any tax liability.
3. It can exist forever and it can run a business as long as it maintains separate books for the same.
Rs 3,800.44 crore lying idle in PMNRF
Why PM CARES when PMNRF exists?
“The PMNRF, as per its official website has a balance of Rs 3,800.44 crore. So why start a new fund and that too at a self-aggrandizing name,” Guha asked.
“Must a colossal national tragedy also be (mis)used to enhance the cult of personality?” the historian added.
CPI (M) General Secretary Sitaram Yechury asked, “We all care about our fellow citizens and their well-being and must help in every way. Why just PM- CARES? INDIA CARES is what it should have been.”
Is PM CARES Fund legal?
On the appeal of India’s first prime minister Jawaharlal Nehru, the PMNRF was set-up in 1948. Since then, they have been used during various disasters the country faces.