A campaign by the name of “Swachh Bharat Abhiyan” was launched on 2nd October, 2014, to accomplish the vision of a ‘Clean India’ by 2nd October 2019, the 150th birthday of Mahatma Gandhi. This being one of the pet projects of Prime Minister Narendra Modi, in the Finance Act, 2015, many benefits were introduced to promote this mission. Any income received by a person on behalf of the Swachh Bharat Kosh or the Clean Ganga Fund set up by the Central Government has been exempted. Also, Swachh Bharat Kosh has been added to the list of institutions, contribution to which is eligible for 100% deduction u/s 80G of the Income Tax Act.
In furtherance of NDA Government’s commitment towards ‘Clean India’, Swachh Bharat Cess has been introduced with effect from 15th November, 2015. Swachh Bharat cess is not another tax but a step towards involving each and every citizen in making contribution to Swachh Bharat. The government plans to use proceeds from this cess exclusively for Swachh Bharat initiatives.
This article shall provide you with an overview of the legal provisions as well as the clarifications issued for Swachh Bharat Cess.