Finance Ministry will look at the option of providing tax benefits for expenditure on CSR (Corporate Social Responsibility) activities by companies after the Budget, Corporate Affairs Minister Sachin Pilot said.
"Now, I think, post Budget, the Finance Ministry will take a view (on whether) it will be taken as an expense or not. But for all purposes, the definition of profit is what it is... Different people have approached, different suggestions have come forward," Pilot said.
As per the proposed Companies Act, certain companies would need to spend two per cent of profits on CSR activities, unless they have a reasonable reason for not doing so.
It is important to understand that this money is not something that goes into the coffers of the government. In fact, we want to keep the government out of it.
"We want self-compliance, self-regulation and self- disclosures that companies should do. They must invest that money for community development and develop the communities where they work," Pilot said.