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2% Swachh Bharat cess, 100% deduction on investment in Kosh

Similar tax treatment is also proposed for the Clean Ganga Fund

Press Trust of India  |  New Delhi 

Finance Minister Arun Jaitley arrives at the North Block to present the Union Budget 2015-16 in New Delhi on Saturday, February 28 2015 Picture by Dalip Kumar

Government today proposed a 2% cess on and allowed 100% deduction on in Kosh.

However, the contribution to Kosh as part of the activities by corporates will not be entitled for tax exemptions.
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"In my direct tax proposals, I have proposed 100% deduction for contributions, other than by way of contributions, to the Kosh," Finance Minister said in 2015-16.

He said a similar tax treatment is also proposed for the Clean Ganga Fund.

Jaitley further proposed to an enabling provision to levy Cess at a rate of 2% or less on all or certain services, if need arises.

"This Cess will be effective from a date to be notified. Resources generated from this cess will be utilised for financing and promoting initiatives towards Swachh Bharat," he added.

There will be 100% deduction on contributions to the Prime Minister's National Relief Fund.

'Swach Bharat Kosh' has been set up to attract funds from various entities, including corporates, for activities related to initiative. The 'Clean Ganga Fund' is aimed at pooling money for taking up works to clean the Ganga river.

and Clean Ganga are among the major initiatives of the Narendra Modi government, which has embarked on a major drive to ensure cleanliness across the country.

First Published: Sat, February 28 2015. 15:42 IST
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