The Ministry of Corporate Affairs on 23rd March 2020 has announced that the funds utilized by companies on preventive healthcare, sanitation measures, and disaster management to check the spread of the novel coronavirus (Covid-19) will be considered part of the Corporate Social Responsibility (CSR) activity.
CSR has become mandatory for companies with effect from April 1, 2014 through the Companies Act, 2013. Firms have to spend 2% of their average net profit of the last three fiscals on CSR activities.
Therefore it is clarified that spending of CSR funds for COVID-19 is eligible CSR activity.
Click here to read the Notification.
