The International Road Federation (IRF), a global body working for better and safer roads the world over has, in a letter, urged the Union Finance and Corporate Affairs Minister Arun Jaitley
07 Jan 2015 | 2748 Views | By Autocar Professional Bureau
The International Road Federation (IRF), a global body working for better and safer roads the world over has, in a letter, urged the Union Finance and Corporate Affairs Minister Arun Jaitley to extend 100 percent income tax exemption for industry and corporate houses, NGOs, individuals and media investing in the road ...
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The International Road Federation (IRF), a global body working for better and safer roads the world over has, in a letter, urged the Union Finance and Corporate Affairs Minister Arun Jaitley to extend 100 percent income tax exemption for industry and corporate houses, NGOs, individuals and media investing in the road safety programmes approved by the government under 80 GGA of the Income Tax Act, instead of current 50 percent under section 80G .
“During the Union Budget financial year 2012-13 the government had allowed income tax exemption on 50 percent of the amount that people and entities contribute for road safety activities. Extending 100 percent exemption will further help motivate people to donate generously for such road safety measures and associate leaders from the industry towards the various related activities.” said K K Kapila, chairman, International Road Federation .
Earlier last year, Union Minister for Road Transport & Highways Nitin Gadkari had also written a letter to the Union finance minister demanding 100 percent IT exemption on road safety programmes to involve corporates.
“During the year about 1.38 lakh people were killed in around 500,000 road accidents reported, resulting in economic losses to the tune of 2-3 % of the GDP, apart from social trauma,” said Mr Gadkari in his letter.
“We have been requesting the MoRTH and the Union finance minister to extend 100 percent income tax exemption for road safety investments from present 50 percent on the lines of concessions extended under provision of section 80 GGA of the proposed Direct Tax Code for incentives to companies spending on promotion of family planning and prevention of HIV-AIDS as also similar provisions available under section 80 GGA of Income Tax Act 1961 in respect of certain donations for scientific research or rural development to an assesse,” said K K Kapila, chairman, International Road Federation.
“IRF has also urged the Union Finance Minister to include road safety in the Corporate Social Responsibility (CSR) provisions in the recently revised Companies’ Bill specifies CSR activities that can be carried out under distinct heads. Road safety, despite its potential of being more dangerous than a deadly disease such as cancer, is still not being accorded the priority it deserves. This may kindly be included as one of approved activities under CSR,” said Kapila.