Companies may get time to deposit unspent CSR funds with banks – The Economic Times

Clipped from: https://economictimes.indiatimes.com/news/company/corporate-trends/cos-may-get-time-to-deposit-unspent-csr-funds-with-banks/articleshow/82689659.cmsSynopsis

Companies are required to spend at least 2% of their average net profit of the preceding three financial years on CSR. In January, the ministry allowed firms to undertake projects on an ongoing basis on the condition that any unspent amount must be deposited with a scheduled bank within 30 days of the end of the financial year.

The government may defer the deadline for companies to deposit the unspent portion of their corporate social responsibility funds into specified bank accounts in a move aimed at providing some relief in the fight against the second wave of Covid-19 and subsequent restrictions.

The ministry of corporate affairs is examining the issue. The due date for these deposits was April 30 and many companies have missed it.

“We have received some representations regarding the issue and we are discussing it,” a government official said.

Companies are required to spend at least 2% of their average net profit of the preceding three financial years on CSR. In January, the ministry allowed firms to undertake projects on an ongoing basis on the condition that any unspent amount must be deposited with a scheduled bank within 30 days of the end of the financial year.

“Considering the current crisis, we request your esteemed office to consider relaxation by providing extension of the timelines up to June 30, 2021,” the Institute of Company Secretaries of India said in a letter to the ministry last month.

Experts said that while lockdowns and restrictions are less stringent than last year and companies have adapted to working online, many professionals or their families have been affected by the infection, leaving teams short-staffed.

India reported over 3.6 million active Covid-19 cases on Sunday morning, with total deaths since the outbreak crossing 270,000, according to government data.

At present, the ministry of corporate affairs has waived the late fee for various statutory filings until July 31 in light of the impact of the second wave.

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