1. In case the CSR amount for a particular financial year is unspent, then the same has to be transferred to a Fund specified in Schedule VII within a period of six month from the end of that Financial Year.
2. Any amount remaining unspent pursuant to any ongoing project, undertaken by a company in pursuance of its Corporate Social Responsibility (CSR) Policy, shall be transferred by the company within a period of thirty days from the end of the financial year to a special account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year.
3. Any contravention to the above provisions will lead to a fine on the Company between Rs. 50,000/- to Rs. 2,500,000/- and every officer of such Company shall be punishable with an imprisonment for a term which may extend till three years or with a fine between Rs. 50,000 to Rs. 500,000 or both.
4. The below table will give a better understanding:
|How to calculate the CSR amount to be spent during FY 2019-20?||2% of the average profits of the previous three years i.e. FY 2018-19, FY 2017-18 & FY 2016-17|
|If a Company fails to spend CSR amount of FY 2019-20 till 31st March, 2020, then?||The amount should be transferred to Funds as mentioned in Schedule VII by 30th September, 2020.|
|If a Company is holding the unspent amount for ongoing project for FY 2019-20 as on 31st March, 2020, then?||Open an Unspent Corporate Social Responsibility A/c and transfer the unspent amount of CSR before 30th April, 2020.
Such amount should be spent within 3 years of date of transfer i.e. by 30th April, 2023
|If a Company fails to spend the Unspent CSR A/C for a period of 3 years then?||The Company will have to transfer to the Funds as mentioned in Schedule VII by 30th April, 2023.|