March 24, 2020 National
Current context: The Ministry of corporate affairs (MCA) has announced on 23rd March 2020, that funds spent on measures to tackle the Covid-19 outbreak will be counted towards the corporate social responsibility (CSR) activity of companies.
Funds to Tackle COVID 19 Counted under CSR
The decision is taken in view of the spread of Coronavirus (COVID 19), WHO declaring it as a pandemic and decision of the Government of India to treat this as a notified disaster.
Things included under the company’s CSR obligation include:
Funds spent on the promotion of Healthcare, including preventive healthcare and sanitation.
Funds spent on this notified Disaster management.
The government has made it compulsory for the companies to spend 2% of their average net profit of the last 3 years on CSR activity in a particular financial year, under the amended Companies Act.
In India, Corporate Social Responsibility was introduced through Section 135 of the Companies Act of 2013.
The MCA is in charge of the administration of the Companies Act 2013 and the Companies Act 1956.
Minister of State for Corporate Affairs: Anurag Thakur