Published Date - 25 September 2017 05:30:32 Updated Date - 25 October 2017 05:42:30

How to Donate to Swachh Bharat Kosh & Clean Ganga Fund

 Swachh Bharat Kosh  has been set up to attract Corporate Social Responsibility (CSR) funds from Corporate Sector and contributions from individuals and philanthropists in response to the call given by Hon'ble Prime Minister on 15th August, 2014 to achieve the objective of Clean India (Swachh Bharat) by the year 2019, the 150th year of the birth anniversary of Mahatma Gandhi through Swachh Bharat Mission.

A nation-wide effort will start on Gandhi Jayanti 2nd October, 2014 to mobilize resources for improving sanitation facilities in the rural and urban areas, particularly, school premises.

The Ministry of Corporate Affairs (MCA) has included donations to the Swach Bharat Kosh and the Clean Ganga Fund — set up by the Central government — as part of corporate social responsibility (CSR) spends by India Inc. This notification was issued last Friday, October 24.

As donations made to eligible funds qualify for certain tax breaks, India Inc is eagerly looking forward to a notification from the Central Board of Direct Taxes (CBDT).

Swachh Bharat Kosh, an effort to fund the Swachh Bharat Campaign invites donations from individuals and corporates. Any individual or corporate can make donation of any desired amount into the Swachh Bharat Kosh. The government urges Indian citizens and companies to donate generously to achieve the objective of clean India.

Corporates can discharge their statutory CSR liabilities under the Companies Act 2013, by simply contributing to Swachh Bharat Kosh. Donations to the “Swachh Bharat Kosh”, other than the sums spent for “Corporate Social Responsibility” are eligible for 100% deduction under section 80G of the Income-tax Act.

In February, MCA had amended Schedule VII of the Companies Act, 2013 and a final set of CSR activities were outlined. These included activities for improving sanitation — donations to Swach Bharat Koch now fall in this segment, whereas donations towards the Clean Ganga Fund qualify as an 'activity for conservation of natural resources and maintaining the quality of water'.

Corporate head-honchos have responded enthusiastically to the Swach Bharat campaign and have cleaned public places. CSR experts feel that both these funds — Swach Bharat Kosh and Clean Ganga Fund — could attract sizeable donations from India Inc. Donations are also a hassle-free way of meeting CSR obligations, according to experts.

On the tax front, it may be recalled that the maiden Budget of the new government had clarified that expenditure incurred towards CSR activities will not be allowed as deductible business expenditure. In other words, such expenditure would not be deducible for tax purposes under section 37(1) of the Income Tax (I-T) Act and will not directly reduce the taxable business profits of a company.

But, India Inc could avail of any tax benefits that were available in respect of such expenditure under other specific sections of the I-T Act, such as section 80G which relates to donations. For instance, contributions to the Prime Minister's National Relief Fund also qualify as a CSR spend. Further, donations to these funds are entitled to a 100% deduction from taxable income.

Under section 80G of the I-T Act, the amount of donation is deductible from taxable income, either in full or to the extent of 50%. The aggregate maximum amount which is allowed as a deduction is subject to a ceiling of 10% of the gross total income of the donor. For certain funds, such as the Prime Minister's National Relief Fund, this ceiling of 10% doesn't apply.

Hence, a notification from the CBDT with regards to the tax breaks available to donations made to Swach Bharat Kosh and the Clean Ganga Fund is crucial, say tax experts.

When the setting up of the Clean Ganga Fund was announced, the government had indicated that even foreign donors could get suitable tax exemptions under domestic tax laws (Indian Income Tax Act) wherever permissible. It was also indicated that the government would explore the possibility of setting up ancillary funds in a few other countries where there is a large dominance of Indian expats — such as USA, UK, Singapore and UAE — to enable Indian migrants to contribute to the fund and get a tax benefit in these countries. It is learnt that the various modalities of this are being worked out.

All Donations would be acknowledged. Further, high value contributors will also get Letter of Thanks from senior officers as under:

Contribution (amount in Lakh Rs)

Level of acknowledgement

Companies

Above Rs. 10 crore

Secretary, Expenditure

Rs.1 crore – Rs.10 crore

Administrator, SBK

Individuals

Above Rs.1 crore

Secretary, Expenditure

Rs.10 lakh – Rs. 1 crore

Administrator, SBK

How to donate?

Donations can be made to Swachh Bharat Kosh as per following details:
Account No: 34215500587
Bank Name: State Bank of India
Branch Name: Central Secretariat Branch
Branch Code: 00625
Address: North Block, New Delhi 110 001
Email: sbi.00625@sbi.co.in
IFSC Code: SBIN0000625
MICR No.: 110002014
SWIFT Code: SBININBB373
PAN No.: AAPTS3635L

Objectives of Swachh Bharat Kosh

  • Construction of Community/individual toilets in rural areas, urban areas, in government schools & Aanganwaadis
  • Renovation and repair of dysfunctional community/individual toilets in government schools, Aanganwadis, Construction activity for water supply to the constructed toilet
  • Training and skill development to facilitate maintenance of constructed toilets and to ensure its inter- linkages with education on hygiene
  • Other initiatives of improving sanitation and cleanliness in rural and urban areas including solid and liquid waste management
  • Any other activity to improve sanitation in the country 

Tax benefits for Swachh Bharat Kosh and Clean Ganga Fund

  • Under the existing provisions of section 80G of the Income-tax Act, a deduction is allowed in computing the total income of a person in respect of donations made to certain funds and charitable institutions. The deduction is allowed at the rate of fifty percent of the amount of donations made except in the case of donations made to certain funds and institutions formed for a social purpose of national importance, where it is allowed at the rate of one hundred percent, such as the National Defence Fund set up by the Central Government, the Prime Minister’s National Relief Fund, the Prime Minister’s Armenia Earthquake Relief Fund, the Africa (Public Contributions-India) Fund, the National Children’s Fund, the National Foundation for Communal Harmony etc.
  • “Swachh Bharat Kosh” has been set up by the Central Government to mobilize resources for improving sanitation facilities in rural and urban areas and school premises through the Swachh Bharat Abhiyan. Similarly, Clean Ganga Fund has been established by the Central Government to attract voluntary contributions to rejuvenate river Ganga.
  • With a view to encourage and enhance people’s participation in the national effort to improve sanitation facilities and rejuvenation of river Ganga, it is proposed to amend section 80G of the Act so as to incentivise donations to the two funds. It is proposed to provide that donations made by any donor to the Swachh Bharat Kosh and donations made by domestic donors to Clean Ganga Fund will be eligible for a deduction of hundred per cent from the total income. However, any sum spent in pursuance of Corporate Social Responsibility under sub-section (5) of section 135 of the Companies Act, 2013, will not be eligible for deduction from the total income of the donor.
  • The existing provisions of section 10(23C) of the Act provide for exemption from tax in respect of the income of certain charitable funds or institutions like the Prime Minister’s National Relief Fund ; the Prime Minister’s Fund (Promotion of Folk Art); the Prime Minister's Aid to Students Fund; the National Foundation for Communal Harmony. Considering the importance of Swachh Bharat Kosh and Clean Ganga Fund, it is also proposed to amend section 10(23C) of the Act so as to exempt the income of Swachh Bharat Kosh and Clean Ganga Fund from income-tax.
  • These amendments will take effect retrospectively from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent assessment years.

Focus on sanitation

  • Jaitley informed the House that 50 lakh toilets have already been constructed in 2014-15, and the target of building six crore toilets will be attained.
  • The Centre had in December 2014 decentralised the implementation of Swachh Bharat Mission in urban areas, and targeted private investment of ₹42,512 crore.
  • Out of the total project cost of ₹62,009 crore, Central assistance would be to the tune of ₹14,623 crore, while the States and Union Territories would be required to contribute ₹4,874 crore.
  • The mission was launched on October 2, 2014 for a period of five years, and will be implemented in 4,041 towns. 

Donations to the “Swachh Bharat Kosh” , other than the sums spent for “Corporate Social Responsibility” under sub-section (5) of Section 135 of the Companies Act, 2013 are eligible for 100% deduction under section 80G of the Income-tax Act, 1961. This is applicable to the assessment year 2015-16 and subsequent years.

Our PAN number is AAPTS3635L


Megha Mahajan

01-12-2017

I didn't received the reply from swach Bharat till now.Mailed on 10 Nov 2017 at-sbi.00625@sbi.co.in

NSC WAGHRAY b

19-03-2018

PLEASE inform acct details for contributions as individual to Clean Ganga fund and percentage of allowed

sat bhushan wadhwa

23-03-2018

How will I get the required receipt of the donationso as to getclaim under sec. 80g.

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