With reference to Corporate Social Responsibility CSR rules in India consider the following statemen...........

Economic Affairs Industrial Policy and Industrial Growth

With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:

1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.

2. CSR rules do not specify minimum spending on CSR activities.

Which of the statements given above is/are correct?

This questions was previously asked in

UPSC CSP GS Previous Year Paper 2024

1 only

2 only

Both 1 and 2

Neither 1 nor 2

1 only

The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act. Statement 1 is correct
Every company that fulfils the conditions set out under Section 135 of the Companies Act, 2013 ('Act') has to spend at least 2% of their average net profits made during the three previous financial years towards the Corporate Social Responsibility (CSR) in the current financial year. Statement II is incorrect

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