Deduction under Chapter VIA CSR Expenditure VisaVis Deduction Under Section 80G

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The Tax Publishers Income Tax--Deduction under Chapter VI-A CSR Expenditure Vis-a-Vis Deduction Under Section 80G CA. Nisha Bhandari Under Section 80G deduction is available in respect of donation to any institution or fund established in India for a charitable purpose provided these institutions and funds fulfil the conditions prescribed in sub-section (5) of Section 80G. A question arises that whether deduction under Section 80G is allowable in respect of CSR expenditure. The learned author examines the issue with the help of decided cases. 1. Allowability of deduction under Section 80G in respect of CSR expenditure Under the scheme of Section 80G there is prohibition regarding certain CSR related expenditure. Clauses (iiihk) and (iiihl) of Section 80G(2)(a) provides 100 per cent deduction in respect of the following : (iiihk) the Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of Section 135 of the Companies Act, 2013; (iiihl) the Clean Ganga Fund, set up by the Central Government, where such assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of Section 135 of the Companies Act, 2013. Thus restriction under Section 80G is provided in respect of 100 per cent deduction in relation to donation made to Swachh Bharat Kosh and clean ganga fund to the extent it is referred to in Section 135(5) of the Companies Act, 2013. Clause (iv) of Section 80G(2)(a) further provides deduction at the rate of 50 per cent in respect of any sum paid by the assessee in the previous year as donation to any other fund or any institution to which Section 80G applies. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Deduction under Chapter VI-A

CSR Expenditure Vis-a-Vis Deduction Under Section 80G

CA. Nisha Bhandari

Under Section 80G deduction is available in respect of donation to any institution or fund established in India for a charitable purpose provided these institutions and funds fulfil the conditions prescribed in sub-section (5) of Section 80G. A question arises that whether deduction under Section 80G is allowable in respect of CSR expenditure. The learned author examines the issue with the help of decided cases.

1. Allowability of deduction under Section 80G in respect of CSR expenditure

Under the scheme of Section 80G there is prohibition regarding certain CSR related expenditure.

Clauses (iiihk) and (iiihl) of Section 80G(2)(a) provides 100 per cent deduction in respect of the following :

(iiihk) the Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of Section 135 of the Companies Act, 2013;

(iiihl) the Clean Ganga Fund, set up by the Central Government, where such assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of Section 135 of the Companies Act, 2013.

Thus restriction under Section 80G is provided in respect of 100 per cent deduction in relation to donation made to Swachh Bharat Kosh and clean ganga fund to the extent it is referred to in Section 135(5) of the Companies Act, 2013.

Clause (iv) of Section 80G(2)(a) further provides deduction at the rate of 50 per cent in respect of any sum paid by the assessee in the previous year as donation to any other fund or any institution to which Section 80G applies.