CSR via Trusts and Form 10BE – Legality of 80G Claims

[Ramanathan Seshan]

Dear Experts,

Many companies outsource their CSR activities to implementing agencies or trusts by way of donations. These agencies then carry out CSR projects on behalf of the companies and issue donation receipts along with Form 10BE. However, Section 80G of the Income Tax Act clearly states that deductions are not allowed for CSR expenditures. In such cases, how are companies managing to claim these deductions?

Regards,

S Ram

AI Summary

Corporate Social Responsibility Spending Not Tax-Deductible: Section 80G Bars Companies from Claiming CSR Expenditure Deductions A discussion forum explores the legal complexities of Corporate Social Responsibility (CSR) expenditures and tax deductions. Participants analyze Section 80G of the Income Tax Act, which explicitly prohibits deductions for CSR activities. The dialogue highlights that companies attempting to claim 80G deductions through implementing agencies or trusts are potentially violating tax regulations, risking potential legal and financial consequences.