Bajaj Group patriarch Rahul Bajaj has asked the Government to clarify whether the Indian firms spending two per cent of their profits on corporate social responsibility, as mandated by the new company law, should get tax exemption on it.
Citing the conflicts in the tax laws, the veteran industry leader on Saturday said that when the companies spend money on charitable trust or donate to institutions as the Prime Minister Relief Fund, then they get exemptions but CSR spending is taxed.
“Today you spend money on R&D and you get 130 to 150 per cent write off. You give money into the PM Relief Fund, you will get 100 per cent write off. On various thing, you donate you get write off. Will you give it to the same organisation for CSR. You said that you would not get. There is contradiction in terms. It's not clear at all,” Bajaj said.
