Scope
Companies meeting any of: net worth ≥₹500 crore / turnover ≥₹1,000 crore / net profit ≥₹5 crore
India · act
Companies Act 2013, s.135 — CSR
Companies Act 2013, section 135 + Schedule VII
Penalties
Company penalty: 2× unspent amount or ₹1 crore (lesser); officers: one-tenth
Last verified
2026-08-25
In plain language
What this law does
The world's first statutory CSR-spend mandate: ≥2% of three-year average net profits on Schedule VII activities, with Dictionary termCSR Committee(3+ directors incl. 1 independent); **CSR Policy**; **Board report disclosure**; unspent amounts → **Unspent CSR Account** / specified funds.Read the full definition governance, policy and board-report disclosure, and unspent-amount escrow rules.
Formal requirements
What the law requires
Reviewed provisions grouped by practical purpose. Use the official text for the full legal context.
Who and what it covers
Net worth ≥₹500 crore, turnover ≥₹1,000 crore, or net profit ≥₹5 crore (any one)
Companies Act 2013, s.135 (CSR)
Metrics and KPIs
2% obligation — spend ≥2% of average net profits of the preceding 3 years on Schedule VII activities (poverty, education, gender, environment, disaster relief, PM funds etc.).
Companies Act 2013, s.135 (CSR)
Enforcement
company liable to 2× the unspent amount or ₹1 crore (whichever less); officers 1/10th.
Companies Act 2013, s.135 (CSR)
Dictionary
Key terms for this law
Terms with a retained, published connection to this legal source.
- CSR CommitteeCompanies Act 2013, s.135 (CSR)