News: Companies Bill: CSR spends to get firms varying tax benefits

#National

Companies Bill: CSR spends to get firms varying tax benefits

The tax benefit against corporate social responsibility (CSR) spending, introduced by the Companies Bill, 2012, which was recently passed by the Rajya Sabha, would vary widely depending on the nature of such expenditure, Times of India reported. At present, both tax and CSR consultants are putting their heads together to chalk out a CSR strategy for India Inc, which would also provide the best tax efficiency.

The tax benefit against corporate social responsibility (CSR) spending, introduced by the Companies Bill, 2012, which was recently passed by the Rajya Sabha, would vary widely depending on the nature of such expenditure, Times of India reported. At present, both tax and CSR consultants are putting their heads together to chalk out a CSR strategy for India Inc, which would also provide the best tax efficiency.

For instance, writing a cheque towards the PM's National Relief Fund (PMNRF) would entitle the donor company to a deduction, from taxable profits, of the entire donation amount. On the other hand, if a company has constructed a school building in a village, no tax benefit may be available — at least not without a drawn out litigation.

Read the full report here

Topics: #National, C-Suite

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