Corporate Social Responsibility (CSR)

Tax Glossary Definition

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) refers to the obligatory expenditure by certain companies on activities aimed at social welfare, community development, and environmental sustainability as mandated under the Companies Act, 2013. CSR initiatives allow companies to contribute to society while enhancing their reputation and stakeholder goodwill.

Example: Companies meeting the prescribed criteria are required to spend at least 2% of their average net profits of the preceding three years on CSR activities, such as education, health, rural development, or environmental projects.

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