Clarification on CSR funds is being used to “build health facilities for COVID treatment.”
The spending of CSR funds for COVID-19 is an eligible CSR operation, according to this Ministry’s General Circular No. 10/2020, dated 23.03.2020. CSR funds can also be used for ‘creating health facilities for COVID treatment’ and ‘establishing medical oxygen generation and storage plants,’ and many other activities mentioned, according to the company.
The Companies Act of 2013 allows for contributions to specific R&D programs. CSR is available to publicly-funded colleges and some organizations that perform research in science, technology, engineering, and medicine.
Companies, including government companies, may use CSR funds to finance operations, schemes, or programs, either directly or in cooperation with other companies as a shared responsibility, according to the Companies (CSR Policy) Rules, 2014, and the guidance provided by the Ministry from time to time.
Medical Facilities providing Covid Services are excluded from Section 269ST of Income Tax
The Central Government, in exercising the powers granted by clause (iii) of the Proviso to Section 269ST of the Income-tax Act, 1961, hereby specifies Hospitals, Dispensaries, Nursing Homes, Covid Care Centres, or similar other medical facilities offering Covid services to patients for the purposes of Section 269ST of the Income-tax Act, 1961, for payments collected in cash between 01.04.2021 and 31.05.2021.
Hospitals, dispensaries, nursing homes, Covid Care Centres, and similar other treatment services receive the patient’s PAN or AADHAAR and the relation between the patient and the payee.
- Section 269ST of Income Tax states that-
No person shall receive from a person a sum of two lakh rupees or more-
(a) from a single individual in a single day;
(b) from a single transaction; or
(c) in respect of transactions connected to one event or occasion from a person, unless via account payee cheque, account payee bank draw, or electronic clearing system via a bank account.
The rules of this section, however, do not apply to:
(i) any receipt by-
b) a bank, a post office savings bank, or a co-operative bank;
(ii) normal transactions as defined in section 269SS;
(iii) any other people, classes of individuals, or receipts that the Central Government may define by publication in the Official Gazette.