No specific tax exemption for companies’ CSR expenses: Government



swachh bharat abhiyan and indiacsrNEW DELHI: The government on Friday said there is no specific tax exemption on expenses incurred by companies under the Corporate Social Responsibility (CSR) activities.

The new companies law, which came into force from April 1, requires certain class of profitable corporates to shell out at least 2 per cent of their three-year annual average net profit towards CSR works.

“…no specific tax exemption has been extended to expenditure incurred on CSR,” corporate affairs minister Arun Jaitley said in the Lok Sabha on Friday.

However, he said that several activities that are part of Schedule VII of the Companies Act, 2013, already enjoy exemptions under the Income Tax Act, 1961.

These activities include contribution to Prime Minister’s relief fund, scientific research, rural development and skill development projects. Schedule VII of the Act pertains to CSR.

“As regards contribution made by companies under CSR towards Swachh Bharat and Clean Ganga, no specific tax exemption has so far been made,” Jaitley said in a written reply.

Responding to a query on whether the government has taken note of private sector companies trying to evade CSR on one pretext or the other, the minister said that information with regard to compliance would be available only after September 2015.

India-Sanitation-Summit-Sanitation-for-All-Toilet-First-6-Feb-2015-New-Delhi-300x180“This is the first year of implementation of CSR by companies under the Act. Information on compliance by companies in this regard will be available only after statutory annual returns on CSR are filed by companies, including private sector companies, which are due after September 2015,” he said.

(5 December 2014)

Please follow and like us:



Previous articleFourth Annual Athletic Meet at OP Jindal School Angul
Next articleAmerican Standard issues sanitation report on World Toilet Day
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to