Question

Which of the following contributions are eligible CSR contributions?

Options

Expenditure on employee safety

Funding Centrally Sponsored Incubators

Both A and B

None of the Above​

Answer 1

Funding Centrally Sponsored Incubators  are eligible CSR contributions

Explanation:

Corporate Social Responsibility (CSR)

The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act.

Hence Expenditure on employee safety are not  eligible CSR contributions

It is allowed that CSR 2% fund to be spent on incubators funded by the Central or State Government or  Public Sector Undertaking of State or Central Government

Funding Centrally Sponsored Incubators  are eligible CSR contributions

Funding Centrally Sponsored Incubators contributions are eligible CSR contributions

Answer 2

Funding Centrally Sponsored Incubators are eligible CSR contributions

• Incubators funded by the Indian Government properly qualify for direct CSR investment, thereby giving a tremendous raise for innovative startups.
• Usually, Schedule vii requires incubator contributions reasonably regarded inside institutions validated by the elected government. More significantly, this eventually increases the scope of CSR and access to capital as well.
• Around two effective percent of the considerable resources are typically given to spend on incubators sponsored by the Central/State governments or PSU.