CSR Form Filing

Companies with net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more during the immediately preceding financial year must comply with CSR requirements.

CSR-1 is for registration of CSR activities with the Central Government, while CSR-2 is the annual report on CSR activities and expenditure to be filed with the Registrar of Companies.

Companies must spend at least 2% of the average net profits made during the three immediately preceding financial years on CSR activities as specified in Schedule VII of the Companies Act.

If the company fails to spend the required amount, the Board must specify the reasons in the CSR report. Unspent amounts must be transferred to a fund specified in Schedule VII within 6 months.

Board resolution for CSR policy, details of CSR committee, annual CSR report, proof of CSR expenditure, and financial statements showing net profit computation are required.

If the company fails to spend the required CSR amount, the Board must disclose the reasons in the Board's report. Unspent amounts must be transferred to a fund specified in Schedule VII within 6 months of the financial year end. Penalties can extend up to ₹1 crore for the company.

CSR provisions apply to companies with net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more in any financial year. The company must spend 2% of the average net profit of the preceding 3 years on CSR.

CSR-2 form must be filed as an addendum to Form AOC-4 within 30 days of the AGM. The AGM must be held within 6 months of the financial year end, so the effective due date is generally by October 30 each year.

CSR expenditure is not allowed as a business deduction under the Income Tax Act. However, contributions to certain specified funds and CSR activities conducted through registered trusts may be eligible for deduction under Section 80G.