This is categorised under Section 35 AC read with rule 11K of Income Tax Rules, 1962 amended in 1998. Revenue Secretary, Shaktikanta Das affirms that road safety related activities are eligible for 100 pct tax exemption under Section 35AC of Income Tax Act 1961.
He says a Scheme/Project that promotes road safety, prevention of accidents and traffic awareness falls under Rule 11K(m) as per 35AC of Income Tax Act 1961. Road Safety related activities are eligible for 100 pct tax exemption. The project needs to be deemed eligible as per terms of Section 35AC (ibid), for which an application is to be made to Secretary of National Committee for Promotion of Social and Economic Welfare.
International Road Federation (IRF) India Chapter and Union Ministry of Road Transport and Highways (MoRTH) stands by enhancement of exemptions on donations towards approved road safety programmes. This will help boost Corporate India earmark CSR spending for Road Safety related activities. With Corporates, Concessionaires and Contractors of Road Infrastructure, Insurance Companies, Philanthropists, NGOs, Civil Society and other stakeholders making use of the provision, contributions towards Road Safety will help save lives.
IRF urges Finance Minister to include road safety in Corporate Social Responsibility (CSR) provisions in the recently revised Companies’ Bill to specify CSR activities that can be carried out under distinct heads. Road safety activity needs to be prioritised and could be recognised as an approved CSR activity says K K Kapila, Chairman, IRF.
Road accident deaths in India are high. Globally, human generated road traffic injuries if left unchecked or not accorded priority could potentially be the 5th leading cause of death by 2020.