In a notification dated 26 May, the Ministry of Corporate Affairs (MCA) has included PM CARES Fund in Schedule VII of the Companies Act, 2013 along with 'the Prime Minister's National Relief Fund'. The changes have been made with a retrospective effect.
With the amendment, the contributions and donations to the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES) will now be considered as corporate social responsibility (CSR) funding for Indian companies among the list of activities prescribed for companies to fulfil their mandatory CSR spend.
"In Schedule VII, item (viii), after the words "Prime Minister's National Relief Fund", the words - or Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) shall be inserted" a Corporate Affairs notification dated 26 May said.
The notification shall be deemed to have come into force on 28 March 2020, according to the ministry notification.