The Government of India has announced the extension of CSR-linked tax rebates for public limited companies undertaking Corporate Social Responsibility (CSR) initiatives in the country’s Aspirational Districts. This move, notified by the Ministry of Corporate Affairs (MCA) in collaboration with the Ministry of Finance and NITI Aayog, is aimed at incentivizing companies to channel their CSR investments into underdeveloped regions that require targeted developmental support. The policy is set to take effect from June 1, 2026, and will be valid for an initial period of five years.

Under the new framework, eligible public companies will be entitled to claim up to 150% weighted tax deduction for CSR expenditures made in Aspirational Districts, provided the projects are aligned with national development priorities such as education, healthcare, nutrition, skill development, sanitation, and renewable energy. To qualify, companies must execute these projects through MCA-registered implementing agencies and submit detailed impact reports and third-party verifications annually. The rebates will apply over and above the minimum 2% CSR spending obligation under Section 135 of the Companies Act, 2013, thus encouraging companies to go beyond compliance.

The scheme will be administered through a special CSR Monitoring Cell, jointly managed by NITI Aayog and the Central Board of Direct Taxes (CBDT), with an integrated digital dashboard to track fund allocation, usage, and regional outcomes. Companies will also receive recognition under a newly introduced National CSR Impact Index, further boosting brand visibility and ESG scores. Industry leaders and social sector experts have welcomed the initiative, calling it a powerful policy tool to redirect corporate capital to high-need areas, foster inclusive growth, and build long-term public-private partnerships in India’s developmental agenda.