Clarification on spending of CSR funds for COVID-19

Last updated: 26 March 2020

Save Share

Quick Summary

The Ministry of Corporate Affairs has issued a clarification regarding the use of Corporate Social Responsibility (CSR) funds for COVID-19 related activities. It has been confirmed that spending CSR funds for COVID-19 is an eligible CSR activity. This can be done under specific items of Schedule VII, including healthcare promotion, preventive healthcare, sanitation, and disaster management.

General Circular No. 10/2020

No. 05/01/2019-CSR
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS

5th floor, A Wing, Shastri Bhawan,
Dr. R. P. Road, New Delhi- 110001
23.03.2020

To,
All Stakeholders,

Subject: Clarification on spending of CSR funds for COVID-19.

Ma'am/Sir,

Keeping in view of the spread of novel Corona Virus (COVID-19) in India, its declaration as pandemic by the World Health Organisation (WHO), and, decision of Government of India to treat this as a notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity.

2. Funds may be spent for various activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII relating to promotion of health care, including preventive health care and sanitation, and, disaster management. Further, as per General Circular No. 21/2014 dated 18.06.2014, items in Schedule VII are broad based and may be interpreted liberally for this purpose.

3. This issues with the approval of the competent authority.

Yours faithfully,
(Gyaneshwar Knmar Singh)
Joint Secretary to Government of India
Tel: 011-23383345

Copy to:
1. E Governance for uploading on MCA Website
2. Guard File

FAQ :

Yes, it has been clarified that spending CSR funds for COVID-19 is an eligible CSR activity.

Funds can be spent for COVID-19 related activities under item nos. (i) and (xii) of Schedule VII, which cover the promotion of healthcare, including preventive healthcare and sanitation, and disaster management.

Yes, as per General Circular No. 21/2014, the items in Schedule VII are broad-based and can be interpreted liberally for this purpose.

This clarification was issued by the Ministry of Corporate Affairs, Government of India.

Notification No : Circular No. 10/2020

72 Views Comment Share Corporate Law Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments