The Ministry of Corporate Affairs vide its notification dated 22nd January 2020 has appointed 22nd day of January, 2021 as the date on which the provisions of section 21 of the 2019 Amendment Act shall come into force.
Section 21 of the Amendment Act deals which deals with Corporate Social Responsibility (CSR). It seeks to cast an obligation on a company to spend amount towards CSR. Removes criteria of profit in three immediate financial years. Provides for the transfer of the unspent amount to separate account as prescribed. The contravention to spend on CSR has been criminalized by providing fine for contravention and imprisonment.
