The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 and Rules made thereunder, have come into force from 01.04.2014. This is the first year of implementation of CSR by companies under the Act. Information on compliance by companies in this regard will be available only after statutory Annual Returns on CSR are filed by Companies including private sector companies, which are due after September, 2015.

While no specific tax exemption has been extended to expenditure incurred on CSR, expenditure on several activities like contributions to Prime Minister’s Relief Fund, scientific research, rural development projects, skill development projects etc., which find place in Schedule VII to the Act, already enjoy such exemptions under the Income Tax Act, 1961. As regards contribution made by companies under CSR towards Swachh Bharat and Clean Ganga, no specific tax exemption has so far been made.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.

Corporate Social Responsibility obligations under Section 135: no general tax exemption; select Schedule VII activities retain tax benefits. The CSR obligation under Section 135 became effective 1 April 2014 and is in its first year; compliance information awaits statutory annual CSR returns due after September 2015. No general tax exemption exists for CSR spending, though particular activities listed in Schedule VII may already receive tax benefits under existing tax law; contributions to Swachh Bharat and Clean Ganga currently lack specific tax exemption.