Contributions made by companies to the PM Relief Fund to combat coronaviruses will be considered as expenditure incurred under Corporate Social Responsibility (CSR). A senior government official gave this information. Companies have spent Rs 52,000 crore in the last five years for social welfare-related activities. The country is struggling with coronavirus. So far, more than 1,000 people are said to be suffering from this infectious disease. The government has announced several measures to deal with this situation.
Regarding this matter, the Ministry of Corporate Affairs said that the contribution to the PM-CARES Fund will be considered as the expenditure incurred in the CSR item as per the company law. According to the Companies Act 2013, companies making profit have to spend up to two per cent of the average net profit of three years on CSR activities. This provision came into existence from April 1, 2014.
For your information, let us tell you that Secretary of Corporate Affairs, Injeti Srinivas said on Sunday that it is a big picture that in the last five years, companies have spent Rs 52,000 crore under the CSR head. He said, "Some companies are not spending on CSR items. At the same time, some companies are spending less than the prescribed limit. Some companies are spending more than the CSR item. More than 50 percent of companies are fulfilling their entire CSR responsibility.
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