India CSR Network
No Result
View All Result
  • Login
  • Register
SUBSCRIBE
  • Home
  • CSR
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Environment
    • Education
    • Gender Equality
    • Health
    • Skill Development
    • No Poverty
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Articles
  • Interviews
  • Events
  • BOOKS
  • More
    • Technology
    • Lifestyle
    • Case Studies
    • Knowledge
    • Social Sector Leaders
    • Social Entrepreneurship
    • Philanthropy
    • Sports
    • Gaming
  • Prime
  • Home
  • CSR
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Environment
    • Education
    • Gender Equality
    • Health
    • Skill Development
    • No Poverty
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Articles
  • Interviews
  • Events
  • BOOKS
  • More
    • Technology
    • Lifestyle
    • Case Studies
    • Knowledge
    • Social Sector Leaders
    • Social Entrepreneurship
    • Philanthropy
    • Sports
    • Gaming
  • Prime
  • Login
  • Register
No Result
View All Result
India CSR Network
No Result
View All Result
Home More

Finance Minister promises to review the new csr rules

by India CSR Network
3 years ago
in More

New Delhi: Finance Minister, Nirmala Sitaraman promised to review the new corporate social responsibility (CSR) rules that provide for a jail term up to three years for non-compliance at CII event.

“At no point and on no score, do we want to make it difficult for industry,” she said at the event.

Earlier, Parliament had approved the Companies (Amendment) Bill which seeks to tighten CSR norms and ensure stricter action for non-compliance of the company law regulations.

A key change in the bill pertains to Corporate Social Responsibility (CSR) spending, wherein companies would have to mandatorily keep unspent money in a special account.

The new amendments of the act says that any amount remaining unspent under sub-section 5, pursuant to any ongoing project fulfilling such conditions, undertaken by a company in persuance of its Corporate Social Responsibility (CSR) Policy, shall be transferred by the company within a period of thirty days from the end of the financial year to a special account to be opened by the company.

The sub-section 5 of the act, says that the articles may contain the provision for the entrenchment whether made on formation of a company or by amendment, agreed by all the members of the company in case of private company and special resolution in case of public company.

The unspent amount shall be spent by the company in pursuance of its obligation towards CSR Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the amount to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year.

Penal Provisions

If a company contravenes the provisions of sub-section 5, the company shall be punishable with the fine of not less than Rs. 50,000 and may extend to Rs. 250,000.

CSRBooks.com CSRBooks.com CSRBooks.com

If the company fails to file the copy of the financial statements, before the expiry of the period specified in section 403, the company shall be punishable with fine of one thousand rupees for every day during which the failure continues.

The fine shall not cross Rs, 10 lakh, but the managing director and the Chief Financial Officer of the company, or in the absence, any other director who is charged by the Board with the responsibility of complying with the provisions of the section, or in the absence of any such director, all the directors of the company, shall be punishable with imprisonment for a term which may extend to 6 months or with fine which shall not be less than Rs. 100,000 and may extend to 5 lakh rupees, or with both.

Referred in sub-section 1, which instructs the company on its management, the Board of every company shall ensure that the company spends, in every financial year, at least 2% of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

If a company fails to spend such amount, the Board shall, specify the reasons for not spending the amount in its report.

Clause 21 empowers the Central Government to prescribe the conditions which need to be fulfilled for which unspent CSR amounts may be transferred to the special account under sub-section 6 of section 135.

Section 135 of the Companies Act, 2013, provides for companies having net worth of Rs. 500 cr or more or turnover of Rs 1000 cr or more or a net profit of rupees 5 cr or more in a financial year to spend atleast 2% of the average net profits of last 3 years for the company’s CSR policy.

To bring clarity in section 135 of the Act the amendment is made, to carry forward the unspent corporate social responsibility amount, to a special account to be spent within three financial years and transfer thereafter to the Fund specified in Schedule VII, in case of an ongoing project and transfer the unspent amount to the Fund specified under Schedule VII, in other cases.

If the company has not completed the period of three financial years since its incorporation, it shall be inserted during such immediately preceding financial years.

Tags: CSRCSR Rule
Share52TweetPin

India CSR Network

India CSR is the largest tech-led platform for information on CSR and sustainability in India offering diverse content across multisectoral issues. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting. To enjoy the premium content, we invite you to subscribe it.

Related Posts

Union Budget 2022: Tax Rebates in Budget for Realty Vital for Salaried Class
More

Union Budget 2022: Tax Rebates in Budget for Realty Vital for Salaried Class

January 19, 2022
India’s Veteran journalist Vinod Dua passes away
More

India’s Veteran journalist Vinod Dua passes away

December 5, 2021
Meet a NGO Leader who digs up dirt to set right system
More

Meet a NGO Leader who digs up dirt to set right system

August 10, 2021
More

Republic or Democratic?

January 22, 2021
Brand Identity of India CSR Network
CSR

Nomination invited for India CSR Professional of the Year Awards

August 4, 2021
More

Value of Books in Life

August 4, 2021
More

Google generates its 83% of revenues from the display of ads

August 4, 2021
More

Reliance Foundation Hospital rewarding medical staff with extra pay

August 4, 2021
CSR

Covid-19: ITC’s Paperboards and Specialty Paper Business lend its support to the needy in Telangana

August 4, 2021

Popular Stories

  • Lupin Terminates 300 Staff

    Lupin Terminates 300 Staff

    0 shares
    Share 0 Tweet 0
  • What is liberalization?

    0 shares
    Share 0 Tweet 0
  • 7 Reasons Why Smartphone Can Make Your Life Easier

    0 shares
    Share 0 Tweet 0
  • QNET CSR Arm Supports Electrification Project to light up the lives of 470 villagers in Meghalaya

    0 shares
    Share 0 Tweet 0
  • MCA amends Schedule III of Companies Act on disclosure norms in financial statements and Details of Corporate Social Responsibility (CSR)

    0 shares
    Share 0 Tweet 0
India CSR Network

  • Home
  • About Us
  • Team
  • Partnership
  • Contact
  • Terms of Use
  • Subscribe

No Result
View All Result
  • Home
  • CSR
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Environment
    • Education
    • Gender Equality
    • Health
    • Skill Development
    • No Poverty
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Articles
  • Interviews
  • Events
  • BOOKS
  • More
    • Technology
    • Lifestyle
    • Case Studies
    • Knowledge
    • Social Sector Leaders
    • Social Entrepreneurship
    • Philanthropy
    • Sports
    • Gaming
  • Prime
  • Login
  • Sign Up
  • Cart

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In