CSR is the keyword in the whole spectrum of the relationship between industry and society.
CSR was introduced upon the introduction of section 135 and rules under The Companies Act, 2013.
The law has been evolving with respect to the compliance framework, penalties, and accountability of the donor and the donee.
Section 135 of The Companies Act, 2013 lays down the provisions related to Corporate Social Responsibility (CSR).
| Sr No | Heading | Details |
| 1 | Applicability | A company under The Companies Act, 2013 which has during the immediately preceding financial year, (i) A net worth of Rs. 500 Crores or more OR (ii) a net profit of Rs. 5 Crores or more |
| 2 | Whom can you donate | An entity specified and registered under the Rules under the Act |
| 3 | Calculation of CSR amount | At least two per cent. of the average net profits of the company made during the three immediately preceding financial years |
| 4 | Should you form CSR committee? | Yes only if the CSR spending amount exceeds INR 50 Lakhs |
| 5 | Reporting | The Report of the Board of directors |
| 6 | CSR policy | Every company must have a CSR policy adopted by the Board. |
