MCA vide its notification dated September 20, 2022 amended the Companies (Corporate Social Responsibility Policy) Rules, 2014 (hereinafter referred to as “the said rules”) and called it the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022 (“the said amendment”). In the said amendment:

• In rule 3, sub-rule (1) of the said rules, after the proviso, the following proviso is inserted:
• “Provided further that a company having any amount in its Unspent Corporate Social Responsibility Account as per sub-section (6) of section 135 shall constitute a CSR Committee and comply with the provisions contained in sub-sections (2) to (6) of the said section.”
• The sub-rule (2) of rule 3 of the said rules is omitted.
• In the said rules, in rule 4, for sub-rule (1), the following sub-rule is substituted by:
• “(1) The Board shall ensure that the CSR activities are undertaken by the company itself or through, –
  • (a) a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company; or
  • (b) a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government; or
  • (c) any entity established under an Act of Parliament or a State legislature; or
  • (d) a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities.
  • Explanation– For the purpose of clause (c), the term “entity” shall mean a statutory body constituted under an Act of Parliament or State legislature to undertake activities covered in Schedule VII of the Act.”

• In the said rules, in rule 8, in sub-rule (3), in clause (c),
  (i) the words “five percent” is substituted by the words “two per cent.”;
  (ii) the words “whichever is less” is substituted by the words “whichever is higher”
• In the said rules, the Annexure-II is substituted as provided in the said amendment.
• In the said rules, in the e-form CSR–1, for serial number 1 and the entries relating thereto, the following serial number is substituted:
  “1. *Nature of the entity
• Company established under section 8, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 and approved under section 80G of the Income Tax Act, 1961.
• Company established under section 8, registered under section 12A and approved under section 80G of the Income Tax Act, 1961.
• Registered public trust, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 and approved under section 80G of the Income Tax Act, 1961
• Registered public trust, registered under section 12A and approved under section 80G of the Income Tax Act, 1961.
• Registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 and approved under section 80G of the Income Tax Act, 1961.
• Registered society, registered under section 12A and approved under section 80G of the Income Tax Act, 1961.
• Company established under section 8 or registered Trust or registered Society established by the Central Government or State Government.
• Entity established under an Act of Parliament or State Legislature.”