Home Legal News [PM cares ] Contributions by corporates to PM CARES Fund to be consideredas CSR activity: centre amends schedule VII of Companies Act

[PM cares ] Contributions by corporates to PM CARES Fund to be consideredas CSR activity: centre amends schedule VII of Companies Act

by Muskan
PM Cares Fund

Contributions by companies to PM CARES will be considered as Corporate Social Responsibility (CSR) funds under the Companies Act 2013.

A notification amending Schedule VII of the Companies Act 2013 has been published for this purpose of contributing in PM cares for CSR . The notification shall be deemed to have come into force from 28th March, 2020.

Section 135 of the Companies Act, 2013, states all companies having net worth of 500 crore, or turnover of 1000 crore or more or a net profit of 500 crore or more during a financial year to constitute a Corporate Social Responsibility (“CSR”) Committee Board. The responsibilities of the Board are ensuring that every company spends, in each financial year, at least 2% of the average net profits of the company, in pursuance of its CSR policy

READ ALSO- Contribution to PM Cares Fund classify as CSR expenditure; Contribution to CM Relief Fund does not: MCA

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The activities while contributing into PM cares fund include:—(i) eradicating extreme hunger and poverty;(ii) promotion of education;(iii) promoting gender equality and empowering women; (iv) reducing child mortality and improving maternal health; (v) combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases; (vi) ensuring environmental sustainability; (vii) employment enhancing vocational skills; (viii) social business projects; (ix) contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government or the State Governments for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women and such other matters can be included by companies in their Corporate Social Responsibility Policies.

Read the notification below:

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