Every religion mandates a portion of one’s revenue for charity- ranging between one third and one sixth of one’s revenue. Based on this principle, the Income Tax laws of every nation allow a percentage of donations as exemption from the taxpayer’s income.The Indian Income Tax Act allows 10% of taxpayer’s gross income as an eligible amount for deduction. More than religious belief, charity is guided by the realization that it is the bounden duty of every human being to help the downtrodden where basic needs are concerned. However, most people hesitate because they are not sure about where to contribute and whether the money or material contributed will really reach the needy.

A recent endeavour that is a public private partnership scheme intended to promote health and hygiene among the downtrodden impressed me in more than one way. This project envisages building toilets for the poor under the Swachh Bharat Abhiyan. The Coimbatore corporation, under the leadership of its Commissioner, has come out with a mission which innovatively combines the Swachh Bharat mission of stopping open defecation with Corporate Social Responsibility and Start Up India.

“Be an employer rather than seek employment” is the mantra of Prime Minister Modi. The Corporation has decided to award the toilet construction contracts to new entrepreneurs to foster entrepreneurship and bolster the Start Up India idea. The eco system of entrepreneurship is addressed here. The aim is to construct 2,500 toilets each costing about Rs.20,000. Of this estimated cost, the central government will subsidize Rs.4,000 with the state government and municipal corporation contributing an additional Rs.2,000 each. The overall cost to be borne by the entrepreneurs would thus reduce to Rs.12,000 per toilet making it a win-win situation for the entrepreneurs and the end users.

The main differentiator in the tourism industry between India and other developed nations is the level of cleanliness. India has a massive problem of open defecation which spoils the country’s environs not to mention causing the spread of disease and ruining the ambience in open areas. “Delhi Belly” which usually hits tourists who sample restaurant and street food in India is but one deterrent to the tourism industry but a major deterrent. The root cause is not hard to find – it lies in the infection caused through polluted water and lack of hygiene. Construction of toilets and enabling their use among the population will bring this problem down considerably while also improving the perception of the country as a clean destination among foreign tourists.

The last corner stone of the idea is of course donations to construct the toilets. The contribution to this mission through a trust will enable individual donors not only to support the cause but also provide them tax benefits. The corporates who need to comply with the CSR (Corporate Social Responsibility) requirements (i.e. companies having net worth of more than Rs.500 crores or turnover of Rs.1,000 crores or Net profit of Rs.5 Crores are obligated to contribute 2% of their average net profit towards public cause as stipulated) may also use this opportunity to meet their CSR requirements while contributing to a noble cause.

All in all, the Swachh Bharat Abhiyan can be easily accomplished on the pillars of Start Up India, Corporate Social Responsibility and contributions to a social cause. Contracts will go to new entrepreneurs and this is one model of the public private partnership which could be accomplished without risk of pilferage of funds. The objectives envisaged by this plan serve a noble cause provided the entire process moves according to plan to reach the end user as intended.

(The author of this column is Mr.G.Karthikeyan, Chartered Accountant, Coimbatore)