Categories: Business

Government changes CSR rules of companies, contribution to PM Cares fund will be considered social expenditure

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Modi govt amends companies act, makes PM cars eligible to receive CSR funds

new Delhi. center The government has made some changes in the Companies Social Responsibility (CSR) rules of companies, whereby the contribution made by them to the PM Cares Fund will be considered as CSR expenditure. Under the Companies Act 2013, companies falling under certain categories are required to spend at least two per cent of their average net profit of the previous three years in corporate social accountability activities in a given year.

The Ministry of Corporate Affairs said in March that the contribution made by companies to the PM Cares Fund would be considered their CSR expense. Implementation of company law comes under the Ministry of Corporate Affairs. This decision was taken by the ministry in view of the corona virus epidemic.

The ministry has now made necessary changes in the schedule-seven of the law by implementing its decision. Schedule-seven of company law is about CSR activities of companies. In the notification issued by the ministry on Tuesday, it has been said that in the schedule-seven, the eighth name has been added to the Prime Minister's National Assistance and Relief Fund (PM Cares Fund) with the words Prime Minister's National Relief Fund.

This notification will be deemed to have come into force on 28 March 2020. The PM Cares Fund will be used in emergency and difficult situations such as the spread of the corona virus epidemic.

This post was published on May 27, 2020 11:59 pm

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