Question
According to the new rules (made in Septā22) of
Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022, the expenditure for social impact assessment included in CSR spending cannot exceed______ of total CSR expenditure for the relevant fiscal year or Rs. 50 lakh, whichever is greater.Solution
Explanation: Provisions of the New CSR Rules i.According to the CSR rules, companies are required to establish a āCSR Committeeā to oversee the implementation of their CSR obligations if they have any funds in their āUnspent Corporate Social Responsibility Account.ā ii.According to the new rules, expenditure for social impact assessment that can be included in CSR spending cannot exceed 2% of total CSR expenditure for the relevant fiscal year or Rs. 50 lakh, whichever is greater. ā¢ Prior to the amendment, the rules only permitted up to 5% of total CSR spending or Rs. 50 lakh, whichever is less.
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