Understand CSR compliance requirements for 2025 under Section 135.
Corporate Social Responsibility (CSR) has transitioned from voluntary to a mandatory activity under Section 135 of the Companies Act. In 2025, regulators are emphasizing stricter monitoring and transparent reporting.
Applicability: Net worth ≥ ₹500 Cr, turnover ≥ ₹1000 Cr, or net profit ≥ ₹5 Cr.
CSR Expenditure: Minimum 2% of average net profits of the last 3 years.
Unspent CSR: If not related to ongoing projects, transfer to Schedule VII Fund within 6 months. For ongoing projects, transfer to CSR Unspent Account within 30 days.
CSR Form CSR-2: Mandatory filing with MCA annually.
Penalties: Companies failing CSR compliance face penalties equal to twice the amount required to be transferred, and officers in default face penalties too.
CSR compliance is both a legal and reputational necessity. Companies should align CSR with ESG strategies for long-term impact.