The Finance Minister, Shri Arun Jaitley presenting the Budget for 2015-16 in Lok Sabha today, proposed that donations (other than CSR contributions under the Companies Act 2013) to the Swachh Bharat Kosh (by residents and non residents) and Clean Ganga Fund (by residents) will be 100 % deductible under section 80G of the Income-tax Act.

He emphasized on improving the quality of life and public health through Swachh Bharat initiatives. He increased the clean energy cess from ₹ 100 to ₹ 200 per metric tonne of coal etc. to finance clean environment initiatives. Shri Jaitley further raised excise duty from 12 % to 15 % on sacks and bags of polymers of ethylene other than for industrial use. He further introduced an enabling provision to levy Swachh Bharat cess at 2 % or less on all or certain services if required. Shri Jaitley proposed in the budget to exempt services by common effluent treatment plants from service tax. Concessions on custom and excise duty for electrically operated vehicles and hybrid vehicles are to be extended upto 31.03.2016, Shri Jaitley said.

Deductibility of donations: contributions to designated environmental funds become fully deductible under section 80G, expanding tax incentives. Donations (other than CSR contributions) to the Swachh Bharat Kosh by residents and non-residents and to the Clean Ganga Fund by residents are made 100% deductible under section 80G of the Income-tax Act; the budget also introduces a Swachh Bharat cess on services up to a capped rate, increases the clean energy cess on coal to fund environmental initiatives, proposes service tax exemption for common effluent treatment plants, raises excise on certain polymer sacks, and extends customs and excise concessions for electric and hybrid vehicles.