Section 135 CSR Rules – Latest Developments and Compliance Tips

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.

Companies Act 2013 – Top Amendments Impacting Private Companies

Discover recent Companies Act amendments affecting private companies in 2025.

Private companies often enjoyed fewer compliance obligations compared to public companies. However, amendments to the Companies Act have gradually narrowed the gap, making compliance stricter.

Audit Trail Mandate: From April 2023, accounting software must have an audit trail feature. In 2025, penalties for non-compliance have increased.

Registers and Records: Non-maintenance of statutory registers (like members, directors) now attracts higher penalties.

Disclosure of Beneficial Ownership: Private companies must identify and disclose significant beneficial owners (SBOs) to prevent money laundering.

Share Capital & Issue Rules: Stricter valuation requirements for preferential allotments.

Enhanced Penalties: Even for small companies, penalty waivers have reduced, ensuring uniform compliance.

Private companies should not assume regulatory leniency. Staying updated with amendments is key to avoiding penalties.

MCA Update 2025 – Key Compliance Deadlines Companies Must Track

Stay updated with MCA compliance deadlines for 2025 to avoid penalties.

Every financial year brings a series of compliance timelines under the Companies Act, 2013. For companies of all sizes, keeping track of these dates is not only important for legal compliance but also to maintain corporate credibility. Missing deadlines can lead to hefty penalties, disqualification of directors, and reputational damage.

Annual Return Filing (Form MGT-7/MGT-7A): Must be filed within 60 days of the Annual General Meeting (AGM). Non-filing attracts penalties of ₹10,000 plus ₹100 per day.

Financial Statements (Form AOC-4): To be filed within 30 days of AGM. Companies must ensure accuracy in disclosures as per Schedule III.

CSR Reporting (Form CSR-2): Mandatory for eligible companies under Section 135. Due annually by 31st March.

DIN KYC (DIR-3 KYC): All directors must update their KYC annually to avoid deactivation of DIN.

MSME Form I: Half-yearly filing for outstanding payments to MSME suppliers.

Event-based filings: Allotment of shares (PAS-3), change in share capital (SH-7), special resolutions (MGT-14).

Timely compliance requires a system-driven approach. Companies should use compliance calendars, ERP systems, and professional guidance to stay ahead.