Government expands Scope of CSR Funding
Finance Minister Nirmala Sitharaman announced on Friday the tax cut for corporates. The tax deduction is applicable for domestic companies and new domestic manufacturing companies. The step is taken for the purpose of stabilizing the economy said Sitharaman addressing her fourth press conference. Government-sponsored incubators funded by state and central government have been made eligible for corporate social responsibility spending. The public funded universities, IITs, national laboratories, research funding in science, technology, engineering and medicine will also be included by the corporates as part of mandatory CSR expenditure.
Companies with a minimum net worth of Rs 500 crore, turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required to spend at least 2% of their profit for the previous three years on CSR activities. The latest move will surely uplift the slowing economy and will help provide much-needed funding for incubators, Institutes and scientific research.