Why CSR

In India, the regulatory framework of CSR is governed by Section 135 of the Companies Act, 2013 read with Schedule VII. India is the first country in the world to regulate CSR under Companies Act. For complete details on Section 135, kindly check our FAQs on Compliance & FAQs on Execution

History & Scope

The companies fulfilling any one of the following three criteria during any of the last 3 financial years(clarification issued by MCA on June 18, 2014) are required to undertake CSR activities:

  • Net Profit of INR 50 million or more; or
  • Net Worth of INR 5 billion or more; or
  • Turnover of INR 10 billion or more.

"Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises" issued by The Department of Public Enterprises (DPE) in April

National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVG) issued for Listed Companies

Proposal of Framework for all companies meeting the prescribed criteria to contribute 2% of their net profits for CSR purpose, proposed through The Companies Bill, 2012

Parliament passes the Companies Bill, 2012 on August 8th, 2013

The Companies (Corporate Social Responsibility) Policy Rules published on 28th February, 2014 and made effective from April 1st, 2014