Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2016 Sir,
IF CSR money is used for sponsership will it attract TDS?
please experts advice me
thanx in advance

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2016 sponsership for the cricket matches under schedule vii section vii

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2016 kindly advice me on the same

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Regarding **TDS on CSR money used for sponsorship**, here’s the key point:

* **CSR (Corporate Social Responsibility) expenses** are governed by the Companies Act, and companies have to spend a certain amount on CSR activities.

* If CSR money is spent on **sponsorship**, like sponsoring cricket matches or events, this is generally treated as **business expenditure**.

* Now, if you make a **payment for sponsorship to an entity or individual**, you **may be liable to deduct TDS** if the nature of payment falls under any TDS provisions (like contract payments under **Section 194C**, professional fees under **194J**, etc.).

* So, **using CSR funds for sponsorship doesn’t exempt you from TDS liability** if the payment triggers TDS under Income Tax rules.

* In case the sponsorship payment is made to a government or notified entity (like a government body or sports authority), then **TDS may not apply** depending on the exemption clauses.

**Summary:**

* CSR money spent on sponsorship = **may attract TDS if payment nature falls under TDS provisions.**
* Check the exact nature of the payment and deduct TDS accordingly.

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