CSR- contribution to charitable trust

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Akash Siby (Querist)
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03 March 2025 Is monetary contribution considered CSR only if given to funds listed in Schedule VII?
Is a contribution to a local registered charitable trust eligible as CSR expenditure?

Asha Kanta Sharma online

Asha Kanta Sharma online

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12 August 2025 Great question on CSR contributions! Here’s a clear explanation:

1. Is monetary contribution considered CSR only if given to funds listed in Schedule VII?
No, not only those funds.

Schedule VII of the Companies Act, 2013 lists various activities eligible for CSR expenditure, including contributions to:

The Prime Minister’s National Relief Fund

Funds specified by the government for socio-economic development

Other activities promoting health, education, environment, etc.

Monetary contributions to these specified funds are definitely eligible.

2. Is a contribution to a local registered charitable trust eligible as CSR expenditure?
Yes, it can be eligible if the trust’s activities align with the CSR objectives under Schedule VII.

Important conditions:

The trust should be registered and recognized under applicable laws (e.g., Trust Act, Societies Act).

The trust should be engaged in activities listed under Schedule VII.

The company must ensure the trust is not involved in activities outside CSR scope.

Proper documentation, such as registration certificates and activity proof, should be maintained.

The company should monitor the utilization of funds for CSR purposes.

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