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Rule 4Chapter 20

CSR Activities

CSR Implementation. – (1) The Board shall ensure that the CSR activities are undertaken by the company itself or through, –

(a)

a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company; or

(b)

a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government; or

(c)

any entity established under an Act of Parliament or a State legislature; or

(d)

a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities.

Explanation

For the purpose of clause (c), the term “entity” shall mean a statutory body constituted under an Act of Parliament or State legislature to undertake activities covered in Schedule VII of the Act.

The Board shall ensure that the CSR activities are undertaken by the company itself or through –

(a)

a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company, or

(b)

a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government; or

(c)

any entity established under an Act of Parliament or a State legislature; or

(d)

a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities.

(2)

(a)

Every entity, covered under sub-rule (1), who intends to undertake any CSR activity, shall register itself with the Central Government by filing the form CSR-1 electronically with the Registrar, with effect from the 01st day of April 2021:

Proviso

Provided that the provisions of this sub-rule shall not affect the CSR projects or programmes approved prior to the 01st day of April 2021.

(b)

Form CSR-1shall be signed and submitted electronically by the entity and shall be verified digitally by a Chartered Accountant in practice or a Company Secretary in practice or a Cost Accountant in practice.

(c)

On the submission of the form CSR-1 on the portal, a unique CSR Registration Number shall be generated by the system automatically.

(3)

A company may engage international organisations for designing, monitoring and evaluation of the CSR projects or programmes as per its CSR policy as well as for capacity building of their own personnel for CSR.

(4)

A company may also collaborate with other companies for undertaking projects or programmes or CSR activities in such a manner that the CSR committees of respective companies are in a position to report separately on such projects or programmes in accordance with these rules.

(5)

The Board of a company shall satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner as approved by it and the Chief Financial Officer or the person responsible for financial management shall certify to the effect.

(6)

In case of ongoing project, the Board of a Company shall monitor the implementation of the project with reference to the approved timelines and year-wise allocation and shall be competent to make modifications, if any, for smooth implementation of the project within the overall permissible time period. ”.

4. CSR Activities.-

(1)

The CSR activities shall be undertaken by the company, as per its stated CSR Policy, as projects or programs or activities (either new or ongoing), excluding activities undertaken in pursuance of its normal course of business.

(2)

The Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through

(a)

a company established under section 8 of the Act or a registered trust or a registered society, established by the company, either singly or alongwith any other company, or

(b)

a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government or any entity established under an Act of Parliament or a State legislature :

Proviso

Provided that- if, the Board of a company decides to undertake its CSR activities through a company established under section 8 of the Act or a registered trust or a registered society, other than those specified in this sub-rule, such company or trust or society shall have an established track record of three years in undertaking similar programs or projects; and the company has specified the projects or programs to be undertaken, the modalities of utilisation of funds of such projects and programs and the monitoring and reporting mechanism.

(2)

The Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through a registered trust or a registered society or a company [ established by the company or its holding or subsidiary or associate company under section 8 of the Act or otherwise] established under section 8 of the Act by the company, either singly or alongwith its holding or subsidiary or associate company, or alongwith any other company, or holding or subsidiary or associate company of such other company, or otherwise :

Proviso

Provided that—

(i)

if such trust, society or company is [ not established by the company or its holding or subsidiary or associate company ] not established by the company, either singly or alongwith its holding or subsidiary or associate company, or alongwith any other company, or holding or subsidiary or associate company of such other company, shall have an established track record of three years in undertaking similar programs or projects;

(ii)

the company has specified the project or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and the monitoring and reporting mechanism.

(3)

A company may also collaborate with other companies for undertaking projects or programs or CSR activities in such a manner that the CSR Committees of respective companies are in a position to report separately on such projects or programs in accordance with these rules.

(4)

Subject to provisions of sub-section (5) of section 135 of the Act, the CSR projects or programs or activities undertaken in India only shall amount to CSR Expenditure.

(5)

The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act.

(6)

Companies may build CSR capacities of their own personnel as well as those of their Implementing agencies through Institutions with established track records of at least three financial years but such expenditure including expenditure on administrative overheads, shall not exceed five percent. of total CSR expenditure of the company in one financial year.

(7)

Contribution of any amount directly or indirectly to any political party under section 182 of the Act, shall not be considered as CSR activity.

Notes, amendments & references (10)

4. CSR Implementation. Rule 4 Substituted vide Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 dated 22.01.2021. To view the Notification, Click Here

Sub-rule (1) Substituted vide MCA Notification dated 20.09.2022 regarding Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022. To view the Notification, Click here.

Substituted vide the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2025 dated 07.07.2025. To view the Notification, Click Here

To view the eform CSR-1 with effect from 14.07.2025, Click Here

CSR Activities.- Rule 4 Substituted vide Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 dated 22.01.2021. To view the Notification, Click Here

excluding activities undertaken in pursuance of its normal course of business. Omitted vide Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020, dated 24.08.2020. To view the notification, Click Here

(2) Substituted vide notification No. G.S.R. 540 (E) dated 23rd May,2016. To view the notification, Click Here

established under section 8 of the Act by the company, either singly or alongwith its holding or subsidiary or associate company, or alongwith any other company, or holding or subsidiary or associate company of such other company, or otherwise : Substituted vide notification No. G.S.R. 43 (E) dated 19th January, 2015. To view the notification, Click Here

not established by the company, either singly or alongwith its holding or subsidiary or associate company, or alongwith any other company, or holding or subsidiary or associate company of such other company, Substituted vide notification No. G.S.R. 43 (E) dated 19th January, 2015. To view the notification, Click Here

Inserted by the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2014 vide notification no.G.S.R. 644(E) dated 12 September 2014. To view the notification, Click Here