Donation by pvt. ltd. co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2015 A Pvt. Ltd. Co. makes donation covered u/s 80G of IT Act.
Whether this is an allowable expenditure under CSR.

Rajesh Kumar

Rajesh Kumar (Expert)
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23 September 2015 Donation made under 80G and CSR activities are two different things. When you make a donation 80G, you take deduction and after taking the deduction,profit is calculated, taxes are paid and net profit figure is arrived at.
CSR expediture has to be done after net profit figure is arrived at @2% of net profit.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2015 so we need to disallow the expenditure claimed and after that NP we need to claim deduction u/s 80G.

Rajesh Kumar

Rajesh Kumar (Expert)
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24 September 2015 No. If deduction is claimed under Section 80G, it cannot be treated as expenses on CSR activity.
Expenditure on CSR activity is done after calculation of net profit. Further, no deduction is available for CSR expenses.

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