ESIC issues Circular regarding contribution to PM CARES to fight COVID-19

Apr 07, 2020 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The Employees’ State Insurance Corporation (ESIC) on April 06, 2020, has issued a Circular requesting to voluntarily contribute one day’s salary to Prime Minister Citizens’ Assistance and Relief in Emergency Situation (PM CARES) Fund to fight COVID-19 pandemic which is causing severe health and economic problems in our country.

ESIC had received several representations from ESIC officers, staff federations who desires to contribute for this noble cause by donating one day’s salary to PM CARES fund. Thus, all the RDs, in charges of SRO, NTA, DM(D), MS, Deans of medical education institutions are requested to deduct one day’s salary (Basic pay + DA) on a voluntary basic, from the salary of April, 2020. Those who are unwilling to contribute towards this nobel cause may intimate the same to their respective DDO in writing, failing of which would be presumed that they have no objection to the deduction. The contribution to PM CARES Fund will be made by ESIC Headquarters on behalf of all the employees of the Corporation.

The following procedures are as under:-

1. All the accounting units will deduct one day’s salary toward PM CARES and book under the account head “PMRF/Other Funds” Account Code “203010100000005” under the current liability in RECEIPT SIDE.

2. After deduction, the list of employees or officers along with the contribution amount may be furnished to Accounts-III of Headquarters on email id [email protected]

3. After that Accounts-III branch will issue a cheque to PM CARES fund and book the said amount under the account head “PMRF/Other Funds” an account code “203010100000005” in payment side and will also issue slips to all the accounting units accordingly.

4. After that the accounting units will respond the suspense slip by booking “responding items” in receipt side and under account head of “PMRF/Other funds”.

5. The Accounts-III of Headquarters will make necessary adjustments for payment to PM CARES.

6. The donation made to the PM CARES Fund shall be eligible for 100% deduction under Section 80G of Income Tax Act.

[Circular No. A-48/15/3/2020-E.III]


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