truCSR

Author: CS Pradeep Kumar Parakh  Executive Summary The question of whether Corporate Social Responsibility (CSR) contributions qualify for tax deductions under Section 80G of the Income Tax Act, 1961, has been a point of considerable debate among corporations and their CSR implementing partners. Specifically, many ask whether companies that undertake CSR activities as mandated by the Companies Act, 2013, can claim deductions under Section 80G if those contributions are made to institutions or projects with 80G certification. This issue was addressed recently in a significant ruling by the Income Tax Appellate Tribunal (ITAT) in its order dated November 28, 2023. In the case of Rustomjee Realty Private Limited (Appeal Number: ITA No.1585/Mum/2023, Assessment Year 2020-21) , the ITAT upheld the company's right to claim a deduction under Section 80G for its CSR expenses. The ruling clarified that CSR expenditures, while mandatory under the Companies Act, are not excluded from eligibil...

  Author:  CS Pradeep Kumar Parakh Executive Summary Indian non-profit organizations (NGOs) play a pivotal role in addressing the nation's diverse social challenges. However, securing adequate funding remains a persistent hurdle. This article explores the fundraising landscape faced by Indian NGOs and offers strategic approaches to overcome these challenges. We delve into the power of cause-related marketing and corporate social responsibility (CSR) as effective avenues for attracting vital resources. Understanding the Fundraising Landscape Indian NGOs often find themselves competing for limited funding amidst a myriad of worthy causes. To stand out, NGOs must develop a compelling value proposition that differentiates them from the crowd. Additionally, potential funders prioritize organizations that demonstrate a clear impact and responsible stewardship of funds. Transparency and measurable outcomes are essential for building trust with donors. Effective Fundraising Strategies...

Author: CS Pradeep Kumar Parakh Executive Summary The Ministry of Home Affairs (MHA) has announced the extension of FCRA registration validity for organizations to September 30, 2024. This extension applies to organizations with pending renewal applications and those whose certificates expire between July 1 and September 30, 2024. Key Points: Extension Period: The validity of FCRA registrations has been extended to September 30, 2024, or until the disposal of renewal applications, whichever is earlier. Eligibility: This extension benefits organizations that have filed and are awaiting the approval of their renewal applications. Grace Period: Organizations with certificates expiring between July 1 and September 30, 2024, are granted a grace period until September 30 to submit their renewal applications. Refusal of Renewal: If a renewal application is rejected, the organization's FCRA registration will be deemed expired from the date of refusal. Additionally, such organizations...

  Author:  CS Pradeep Kumar Parakh  Executive Summary Corporate Social Responsibility (CSR) in India has transitioned from a philanthropic activity to a strategic imperative, driven by regulatory mandates and a focus on sustainability. Digitalization has become crucial for effective monitoring, control, and compliance within this framework. This paper highlights how digital tools are transforming CSR, ensuring transparency, accountability, and alignment with India’s regulatory requirements. Digitalization for Compliance and Monitoring India’s CSR regulations, under the Companies Act, 2013, require companies to invest a percentage of their profits in social initiatives. Compliance demands meticulous tracking and reporting—tasks significantly streamlined by digital tools. These platforms enable real-time monitoring of CSR activities, ensuring they meet regulatory requirements and are executed effectively. Automated reporting helps maintain accurate records of expenditures a...

Author: CS Pradeep Kumar Parakh  Introduction: In today's complex business environment, companies face numerous regulatory requirements and compliances that must be adhered to. Failing to comply with these regulations can result in severe penalties, which may have significant repercussions on a company's reputation, financial standing, and overall operations. On the other hand, streamlining compliances can be a proactive approach that not only ensures adherence to the law but also protects the company from facing consequential penalties. To highlight the importance of making the right choice, we will examine a real-world example of an adjudication of penalty under Section 454 of the Companies Act, 2013, involving M/S Takraf India Private Limited for violating provisions of Section 135(6) of the Companies Act, 2013.   The Case of M/S Takraf India Private Limited: F.NO. ROC/ CHN/ TAKRAF/ ADJ Order/ S.135(6) / 2023, dated 11 July 2023, marks a significant event in the...

  Effective Impact Reports Raising grants needs effective impact evidence and data-driven storytelling . We all publish our annual reports but these annual reports are no longer sufficient to raise new grants/ donations.  We must be able to demonstrate how our initiative is able to bring positive social change to people and the planet.  In India, where CSR is mandatory, impact report is must for projects of value over Rs. 50 lakh and the Company’s CSR mandate is over Rs. 1 Cr. However, it is advisable to conduct impact assessment for projects of any value. Sharing such reports with funders and other stakeholders will help build your credibility and thus, help strengthen the relationship. Example:  Suppose your organisations vision is to alleviate poverty by helping people from marginalized communities to secure affordable housing through a government scheme.  You can measure and present your organisation’s impacts as: Comparison of no. of people supported and re...