Shareholders not happy if CSR spending increases: NMDC CMD

Shareholders are not happy when a company spends more money on activities under Corporate Social Responsibility (CSR),NMDC chairman-cum-managing director, N Baijendra Kumar said today.

"Shareholders are slightly worried if we spend more money on CSR. They are worried about higher taxes. The CSR activities should have some kind of tax-free thing (tax concessions). I would like to mention it to policy-makers," the National Mineral Development Corporation CMD said.

The miner spends Rs 150 crore to Rs 200 croreper annumon CSR activities, Kumar said in his address at the 158thIncome Tax Day celebrations here.

He requested the Income Tax Department to think if there is a possibility of introducing some sort of incentives, not necessarily monetary benefits, for the honest tax payer, whether big or small.

A senior official of the I-T Department saidNMDC paid Rs 2,259 crore towards corporate tax during the last financial year.

Andhra Pradesh and Telangana Governor ESL Narasimhan, in his address said the I-T Department should provide facilities to people who are not able to file e-returns.

"There has to be an alternative method for e-returns as some people like senior citizens may not be aware of computer operations. The I-T Department has to provide some assistance. You should have some trained officials to help them," he added.

Narasimhan also said companies should spend more on healthcare and rural development under CSR activities.

Dr Reddy's Laboratories chairman, K Satish Reddy, Amar Raja Batteries chairman, Ramachandra N Galla and Bharat Dynamics chairman and managing director V Uday Bhaskar also spoke.