SECTION 35CCC and 35CCD

The assess company makes contribution toward:

Notified skills development project u/s 35CCD (other than for buying land and building), this option however, is available to only eligible companies which are engaged in production/manufacturing of specified products or engaged in providing specified services only.
Notified agriculture extension project u/s 35CCC; OR

The company in this case is eligible towards a weighted deduction of 150 percent of the expended sum.

NOTE: For getting the deduction under above mentioned provided the assess has to get the approval for the project from the concerned authorities. The details regarding the forms of approval and eligibility are provided under the rule 6AAD and 6AAE (for 35CCC) and under the 6AAF and 6AAG (for 35CCD) of the Income Tax Rules,1962.

SECTION 35

The CSR funds are routed towards institution registered under section 35 of the IT Act for scientific search or social research will be eligible to get 125 percentage to 175 percentage tax advanced.

TO REDUSE ENVIRONMENTAL IMPACTS

The use of innovative insulation materials, such as ULTIMATE, and new insulation systerm, such as low amissivity cladding systems, will help to provide maximize potential energy savings and improved environmental protection on industrial equipment.

SECTION 12AA

Thought the assess company has been provided with certain benefits for their contribution towards the society, CSR should be considered as a medium for ensuring the sustainability of an organization on a long term basis and not as a reprimand. Such provisioning is an opportunity to enhance company's brand value and market equity which if done strategically can develop business goodwill with shareholders, consumers, Indian government, Indian citizens and the international public at large.

Investing in trusts and societies registered under section 12AA of the IT Act would provide a benefit under section 80G of percent of the contribution made.

NOTE: The detail mentioned in the document are true as of date but are subject to amendment in both the area of csr and taxation in future.

CAN TAX DEDUCTION BE CLAIMED FOR CSR EXPENDITURED MADE UNDER SECTION 135 OF COMPANIES ACT,2012?

As per the amendment made the companies Act in 2013, CSR has been made a mandate for the companies that fall within the ambit prescribed in the provision. This being a burden levied on the companies there are certain benefits that can be claimed by these companies in the form of deduction under the Income Tax Act. Generally CSR Expenditure is not eligible for deduction under section 37 however the following are the provisions under which deduction can be claimed.

Fulcrum