Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningMandatory social spending by larger companies.
Relevant ActCompanies Act, 2013
Section / ruleSection 135
Technical meaning
Obligation for companies meeting net worth (Rs 500 crore), turnover (Rs 1,000 crore) or net profit (Rs 5 crore) thresholds to spend 2% of average net profits on CSR activities.
Practical example
A company with Rs 6 crore net profit must constitute CSR obligations.
Related terms
- Schedule VII
Official reference
Companies Act, 2013, Section 135
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