Categories: Business

Tax tribunals allow deductions for donations part of CSR spend

MUMBAI: Delhi and Mumbai benches of ITAT recently allowed a deduction under section 80-G of the I-T Act to two corporate entities for donations made by them, even though such donations were part of their CSR expenses.
During assessment, I-T officials had denied the deduction on the ground that donations, which are part of CSR expenses, are not voluntary in nature but are a compliance to be made under the Companies Act.Donations can only be voluntary in nature, was the stand taken by I-T officials.
Under section 135 of the Companies Act read with the rules, companies having a net worth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more have to comply with the CSR provisions. These companies have to spend at least 2% of their average net profit for the preceding three fiscals on CSR activities. Nabin Ballodia, tax partner at BDO-India, states, “Tribunals are now increasingly allowing the deduction under section 80G. The reason for the allowance is that there is no embargo under section 80G to disallow the expenditure.”

News Today

Recent Posts

Kareena Kapoor’s Next Untitled Film With Meghna Gulzar Gets Prithviraj Sukumaran On Board

Kareena Kapoor is working with Raazi director Meghna Gulzar for her next film. The project,…

2 weeks ago

Purdue basketball freshman Daniel Jacobsen injured vs Northern Kentucky

2024-11-09 15:00:03 WEST LAFAYETTE -- Daniel Jacobsen's second game in Purdue basketball's starting lineup lasted…

2 weeks ago

Rashida Jones honors dad Quincy Jones with heartfelt tribute: ‘He was love’

2024-11-09 14:50:03 Rashida Jones is remembering her late father, famed music producer Quincy Jones, in…

2 weeks ago

Nosferatu Screening at Apollo Theatre Shows Student Interest in Experimental Cinema – The Oberlin Review

2024-11-09 14:40:03 A silent German expressionist film about vampires accompanied by Radiohead’s music — what…

2 weeks ago

What Are Adaptogens? Find Out How These 3 Herbs May Help You Tackle Stress Head-On

Let's face it - life can be downright stressful! With everything moving at breakneck speed,…

2 weeks ago

The new Mac Mini takes a small step towards upgradeable storage

Apple’s redesigned Mac Mini M4 has ditched the previous M2 machine’s SSD that was soldered…

2 weeks ago