Since our previous posts on Corporate Social Responsibility
(CSR) [which can be accessed
here,
here and
here], there have been numerous changes to the governance of
CSR in India.
Key Changes in 2019
Exemptions to Start-ups: Complying corporations which
are freshly incorporated and have not completed 3 years of
establishment, the amount to be spend on the CSR activities will be
equivalent to 2% of the net profits made by the company in the
previous financial year as compared to 2% of the average net
profits made by the company in the 3 immediately preceding
financial years.
Carry Forward: If there are any unspent CSR funds
during a financial year in respect to the "ongoing
project", the company must transfer the amount to a special
CSR Unspent Account within 30 days from the end of the
financial year. The proceeds from the account must be utilized by
the company in the period of the next 3 financial years and if the
company fails to do the amount must be
