Corporate law and accounting professionals involved in corporate social responsibility (CSR) related activities expect the Centre to soon withdraw tax benefits for donations as part of CSR activity to eligible funds and NGOs.

Sandip Pitty, practising chartered accountant and Joint Treasurer of Friends of Tribal Society, said at Bengal Chamber of Commerce & Industry here on Thursday that this double benefit — mandatory CSR compliance as well as income-tax relief, in some cases as high as 100 per cent — could shortly be done away with. “Indirect CSR activities through donations to Prime Minister’s Relief Fund or funds run by State Governme-nts are eligible for I-T benefits. But these double benefits may be withdrawn,” he said.

Siddhartha Murarka, Vice-Chairman of the Eastern Regional Council of Institute of Company Secretaries, feared that non-compliance of CSR norms might soon attract penalty too.

“Non-spending of 2 per cent of the average preceding three years’ net profit or inadequate disclosure regarding non-compliance of the CSR norms may attract penalty. The Centre may the clamp the penalty this year or latest by next year,” he said.

No more grey areas Both the professionals indicated that some of the ambiguities or grey areas in the CSR law and rules are likely to be removed so that companies do not shirk their responsibilities. According to estimates, some 16,000 companies are obliged to discharge these responsibilities. Some ₹20,000 crore should be available in a year for CSR activity in the country to share social development.

Experts also suggested companies undertake social audit and impact assessment for recording better CSR achievements.

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