Companies (CSR Policy) Rules, 2014

In short

These Rules operationalise Section 135 — defining who implements CSR, how it is tracked, and how it is reported. The January 2021 amendment was the most significant overhaul, professionalising the ecosystem.

Who it applies to

All companies undertaking CSR and the implementing agencies they fund.

Key points

• —Implementing agencies must register with MCA via Form CSR-1 and obtain a CSR Registration Number (from April 2021).
• —Impact assessment is mandatory for companies with average CSR obligation ≥ ₹10 crore, for projects ≥ ₹1 crore.
• —Administrative overheads capped at 5% of total CSR spend.
• —Surplus from CSR projects cannot form part of business profit and must be ploughed back into CSR.
• —Annual report on CSR in the prescribed format is mandatory; the CFO must certify fund utilisation.

Deadlines & renewal

CSR-1 must be in place before a company can disburse CSR funds to an agency; impact-assessment reports accompany the annual board report.

What to do

NGOs: complete CSR-1 and keep 12A/80G current. Companies: verify the agency's CSR Registration Number before disbursing.

Worth knowing

Disbursing to an unregistered agency means the spend may not qualify as CSR.