Can CSR Donations Qualify for Deductions under Section 80G of the Income Tax Act?

In a recent ruling, the Ahmedbad ITAT held that CSR-related donations cannot be denied deduction under Section 80G solely because they form part of a company’s CSR obligations.

The Tribunal clarified that while CSR expenditure is not deductible as a business expense under Section 37(1), eligible donations may still qualify for deduction under Section 80G.

In this issue, we cover the rulings and its implications for companies and non-profits.

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