Corporate Social Responsibility (CSR) Opportunities and Challenges- Tax Perspective
Agenda
►Applicability of CSR
►Permissible CSR activities
►Computation of CSR expenditure – Draft CSR Rules
►Computation of Net Profits
►T ax issues on CSR
►Specific provisions of ITA to improve prospects of deductibility of CSR ►Alternative forms of business
►Key T akeaways
Applicability of CSR
Applicable to all companies incorporated in India and having either of the following in any financial year – Section 135(1)
爱不爱妈妈1.Net Worth of INR 500 crore or more; OR
2.Turnover of INR 1000 crore or more; OR
3.Net Profit of INR 5 crore or more有趣的趣怎么写
Permissible CSR activities
Under the Companies Act, 2013 (Schedule VII) (i)Eradicating extreme hunger and poverty; (ii)Promotion of education;
隐形画(iii)Promoting gender equality and empowering women;
(iv)Reducing child mortality and improving maternal health;
(v)Combating human immunodeficiency virus, acquired immune deficiency syndrome,
红萝卜烧肉malaria and other dias;
(vi)Ensuring environmental sustainability; (vii)Employment enhancing vocational skills; (viii)Social business projects;
(ix)Contribution to the Prime Minister's
National Relief Fund or any other fund t up by the Central Government or the State
Governments for socioeconomic
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development and relief and funds for the
welfare of the Scheduled Castes, the
Scheduled Tribes, other backward class,
minorities and women; and
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(x)Such other matters as may be prescribed Under the Income-tax Act, 1961 (Section 80G) I. Following donation allowed subject to a maximum of 10% of the Adjusted Gross Total Income:
印光法师文钞A.Donations to Government for promoting family
planning etc – 100% allowed
B.Eligible for 50% deduction:
•Donations to Government for other charitable purpo
•Donation for housing accommodation/ improvement of cities, towns or villages etc.
II. Eligible for 100% deduction w/o maximum limit: ▪Donation to PM’s National Relief Fund
▪Donation to State Government Fund for Medical Relief to the Poor
▪National Illness Assistance Fund
▪Chief Minister's or Lt. Governor's Relief Fund
▪Approved university or educational institution of national eminence, etc.
Computation of CSR expenditure – Draft CSR Rules
火星离地球有多远►‘Net Profit’ means net profit before tax as per books of accounts, computed as per ction 198 of the Companies Act, 2013 and shall not include profits arising from branches outside India
►CSR spending = 2% of the average net profits made by the company during every block of three years
►CSR is applicable from FY 2014-15. For the purpo of First CSR reporting the Net Profit shall mean average of the annual net profit of the preceding three financial years.
Particulars Amounts
(in INR) Net Profit before tax as per books of FY 2013-14 2,500 Net Profit before tax as per books of FY 2012-13 1,700 Net Profit before tax as per books of FY 2011-12 1,000 Total (A) 5,200 Average of annual net profit of the preceding three financial years B (A/3) 1,733 CSR expenditure for the FY 2014-15 (B*2%) 34.67
