MCA Notifies Companies (CSR Policy) Amendment Rules 2022

CSR policy Amendments Rules, 2022

According to the section 135(6) of the Companies Act, 2013 a new proviso is added:

  • A company having any amount in its unspent CSR Account shall constitute a CSR committee and shall comply with provisions contained in sub- clause 2 of the Section 135(6) of the above-mentioned Act.

In Sub rule 2 is omitted which was as follows under the Act:

“If section 135(1) of the Companies Act 2013 is once applicable, a company shall comply with the entire CSR provisions unless it ceases to meet the criteria during the next three years.”

In Sub rule 4 following sub rule is substituted:

The board will ensure that CSR activities are undertaken by the companies itself or through:

  • Section 8 company, Registered society or registered public trust exempted under sub-clauses (iv), (v), (vi) or (via) of clause 23C of Section 10 or registered under section 12 A and approved under Section 80G of the Income Tax Act, 1961, established by the company either singly or along with any other company.
  • Section 8 company, Registered society or registered trust established by the central government or state government
  • Any established entity under the Act of Parliament or State Legislature
  • Section 8 company, Registered society or registered public trust exempted under sub-clauses (iv), (v), (vi) or (via) of clause 23C of Section 10 or registered under section 12 A and approved under Section 80G of the Income Tax Act, 1961 and having established track record of atleast 3 years in undertaking the similar activities.

In rule 8, sub rule 3, in clause (c),

  • In place of 5%, the word 2% shall be substituted.
  • Substitution of word “whichever is higher”, in place of the word “whichever is less”.
  • In the said rule, for Annexure II, new Annexure format shall be substituted.

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