CSR Expenses (to a section 8 Company) having common directors, Income Tax

[CABIJENDERKUMAR BANSAL]

Dear All

X(Assessee company)'s management incorporated a section 8 Company which is duly registered under section 80G as well as Section 12A of Income Tax Act.

Now X co.is discharging its CSR liability by contributing to this section 8 Company which is then contributing donations received to third parties such as hospitals, schools etc.

X co. and Section 8 Co. has common directors and shareholders.

Will it be covered under CSR / deduction for section 80G ?

Regards

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my view it will not come under CSR and also it is not eligible for section 80G.

[deepak gulati]

In my opinion it should be allowed if it not for benefit of employees or promoters.