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CSR Impact Assessment

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Pranita Purohit (Querist)
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01 March 2026 If impact assessment expenditure incurred by a company be treated as part of CSR expenditure? or will it be over and above 2% expenditure obligation/

also maximum 5% cap on overhead expenses on CSR. if these overheads be treated as part of CSR Expenditure.

thus if this 2% Impact Assessment fees and 5% administration overheads is over and above legal CSR obligation of 2% of average net profit?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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02 March 2026 As per the Companies Act, 2013, companies meeting specific thresholds must spend 2% of their average net profits on CSR. Impact assessment expenditure (capped at 2% of total CSR spend or ₹50 lakh, whichever is higher) and administrative overheads (capped at 5% of total CSR spend) are both permissible CSR expenses that count towards fulfilling this 2% obligation.

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