TL;DR for CAs
- CSR applies when net worth/turnover/profit thresholds are met.
- Unspent amounts have ongoing/ongoing project rules.
- Board report disclosures are scrutinised.
What it is
Section 135 mandates Corporate Social Responsibility spending and reporting for qualifying companies.
Who it applies to
Companies meeting net worth, turnover, or net profit criteria in the preceding FY.
Key provisions
- 2% spending obligation
- CSR committee/board roles
- Transfer of unspent amounts as prescribed
Practical tips for CAs
Track qualifying criteria yearly. Align CSR policy with Schedule VII activities.
Common mistakes
Counting ineligible spends; weak impact documentation; missing annual action plan.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.