The National Committee for Promotion of Social & Economic Welfare (NCPSEW) is a body set up under the Indian Income Tax Act, primarily aimed at encouraging individuals and businesses to support social and economic welfare projects across the country. It is governed by the Department of Revenue under the Ministry of Finance.
Organizations or institutions that wish to undertake eligible projects for public benefit—such as education, health, environment, or poverty alleviation—can apply to the NCPSEW for approval. Once a project is approved by the Committee, donors contributing to it become eligible for tax deductions under Section 35AC of the Income Tax Act (Note: This section was withdrawn effective 1 April 2017, but projects approved before that may still have implications or compliance history to be addressed).
For small business owners, NGOs, and companies engaged in Corporate Social Responsibility (CSR), understanding the NCPSEW is essential when reviewing old compliance obligations or assessing the eligibility of past deductions claimed. While the tax benefits linked to NCPSEW projects are no longer available for new contributions, its role in approving socially beneficial projects historically has made it a key part of India’s tax and welfare framework.
If you are navigating old project approvals or past donations under this scheme, or simply want clarity on tax benefits related to social contributions, expert guidance can help. Visit FinTax24’s Income Tax Solutions for professional assistance tailored to your specific needs.
In short, while the NCPSEW no longer plays an active role in approving new projects under the Income Tax Act, understanding its function is important for legacy tax filings and audits related to donations and CSR initiatives.