On March 28, the Union Government’s Ministry of Corporate Affairs has issued a notification regarding the PM Cares Fund set up to fight the war against Corona. The donations made by the companies will now be considered as part of the CSR of these companies.
The Union Government’s Ministry of Corporate Affairs has issued a notification regarding the PM Cares Fund created to fight against the Novel coranavirus epidemic.
According to the notification, donations made by companies in this fund will be considered as part of the Corporate Social Responsibility (CSR) of these companies.
The fund was formed on March 28 The PM Cares (Prime Minister’s Citizens Assistance and Relief in Emergency Situations) fund was formed on 28 March to fight the war against Corona.
The Companies Act 2013 amended Schedule 7 of the Companies Act to make legal implementation of donations made by companies in the PM Cares Fund of Corporate Affairs a part of their CSR.
What used to happen before? Previously, donations made by companies to the Prime Minister’s National Relief Fund were considered to be part of the companies’ CSR. In this notification, giving relief to corporate donors, the Ministry of Corporate Affairs has clarified that the changes will come into effect from the date of March 28, 2020.
What is CSR?
Corporate Social Responsibility means CSR to tell companies in which activities they discharge their social responsibilities.
The government decides about these activities. The CSR rules in India are effective from April 1, 2014. These rules apply to companies whose annual net worth is 500 crores or annual income of 1000 crores or annual profit of five crores. Such companies are required to spend on CSR activities.
Discussion about this post