Spending on 'Har Ghar Tiranga' campaign declared CSR activity under Companies Act
Tags: National News
The Corporate Affairs Ministry has said that companies can spend their Corporate Social Responsibility (CSR) funds for activities related to the 'Har Ghar Tiranga Abhiyan'.
The circular issued by the ministry states that 'the expenditure of CSR funds for activities related to this campaign such as mass production and supply of the national flag, outreach and promotion efforts and other related activities are CSR activities.
The circular also states that companies can carry out these activities under the Companies (CSR Policy) Rules, 2014.
It aims to encourage people to bring home the national flag and hoist it to mark the 75th year of India's independence.
Corporate Social Responsibility (CSR)
Under CSR, companies integrate social and environmental concerns with their business partners with their stakeholders.
It is regulated under Section 135 of the Companies Act, 2013.
India is the first country in the world to make CSR mandatory.
The provision of CSR is applicable to companies whose net worth is more than ₹ 500 crores or turnover is more than ₹ 1000 crores or net profit is more than ₹ 5 crores.
Certain categories of profitable companies are required to spend at least two per cent of their annual average net profit for three years on Corporate Social Responsibility (CSR) activities.
Promotion of education
Gender equality and women empowerment
Eradication of poverty and hunger
Preparing to fight HIV and other diseases
Ensuring environmental balance
Improvement in infant mortality rate and maternal mortality rate in the country.
Contribution to Prime Minister's National Relief Fund
Promoting sports, Slum area development etc.
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