The Ministry of Corporate Affairs has notified Companies (Corporate Social Responsibility Policy) Rules, 2014 (http://www.mca.gov.in), which prescribes the format for disclosure of utilisation of Corporate Social Responsibility (CSR) funds by the companies.

There are no specific tax exemption/concessions to companies under the Income Tax Act, 1961 for expenditure incurred by companies towards CSR. However, spending by companies on several activities like rural development projects, skill development projects, agricultural extension projects, contribution to Prime Minister’s National Relief Fund etc., which find place in Schedule VII of the Companies Act, 2013, may qualify for tax exemptions under relevant provisions of Income Tax Act, 1961 subject to the fulfilment of any specified conditions.

This Ministry administers the Companies Act, which does not deal with employment policy of corporates.

The rate of growth of corporates in various States during each of the last three financial years, State/UT-wise is given in Annex.

This Ministry neither deals with priority sector nor with the investment policy of the companies.

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

Corporate Social Responsibility rules: CSR expenditure generally lacks specific income tax exemptions; listed activities may qualify if conditions met. The Ministry prescribes disclosure of CSR fund utilisation under the Companies (Corporate Social Responsibility Policy) Rules, 2014. There is no general income tax exemption for CSR expenditure under the Income Tax Act, 1961, although certain CSR listed activities may qualify for tax relief under relevant income tax provisions if specified conditions are met. The Ministry administers the Companies Act and does not address corporate employment policy, priority sector, or investment policy; state wise corporate growth data are provided in an Annex.