Central regulation

CSR Annual Action Plan & Form CSR-2

Companies with net worth Rs 500 cr / turnover Rs 1,000 cr / net profit Rs 5 cr (in any of preceding three FYs) must spend 2% of average net profit on CSR, constitute a CSR Committee, and file Form CSR-2 annually.

Definition

Companies with net worth Rs 500 cr / turnover Rs 1,000 cr / net profit Rs 5 cr (in any of preceding three FYs) must spend 2% of average net profit on CSR, constitute a CSR Committee, and file Form CSR-2 annually.

What it means in practice

CSR Annual Action Plan & Form CSR-2 is administered by Ministry of Corporate Affairs (MCA). The obligation is grounded in Companies Act, 2013 — Section 135 + Companies (CSR Policy) Rules, 2014 (Section 135; Rule 8 (Reporting)).

Unspent CSR (other than ongoing projects) must be transferred to Schedule VII fund within 6 months; ongoing project unspent goes to Unspent CSR Account.

Triggers (applicability predicates)

These predicates are evaluated by Compliance Radar's applicability engine against a business profile to decide whether this rule applies.

Deadlines and penalty

Cadence: annual next action: 2026-09-30

Penalty for default: Default: penalty twice the unspent amount or Rs 1 crore (whichever less); officers Rs 2 lakh-Rs 5 lakh per default under Sec 135(7).

Citations