CSR Rules: MCA’s Revised Form CSR-1 for Non-Profits
Why in the news
The Ministry of Corporate Affairs tightened registration and disclosure for non-profits that carry out CSR on behalf of companies, to stop misuse and tie CSR funding to tax compliance.
Key facts
- A new Form CSR-1 takes effect on 14 July 2025, requiring fuller disclosures from trusts, societies and Section 8 companies.
- Goals: keep bogus or shell entities out, match Income Tax Act provisions (Sections 12A, 80G, 10(23C)) and improve transparency.
- Income tax registration is a prerequisite to receive CSR money; certificates under 80G and 12A must be filed where applicable.
| Eligibility | Earlier | Now |
|---|---|---|
| Implementing agencies | Only those registered under Section 12A | Also universities and hospitals exempt under Section 10(23C) |
About CSR
CSR is a business approach in which firms build social and environmental concerns into operations and stakeholder dealings, voluntarily going beyond profit.
- Triple bottom line: People, Planet, Profit.
- Stakeholder engagement, ethical conduct, environmental sustainability and community involvement.
| Activity type | Example |
|---|---|
| Philanthropy | Donations to NGOs, funding schools or hospitals |
| Volunteering | Staff joining clean-ups or literacy drives |
| Environmental | Renewable energy, recycling, carbon offsetting |
| Ethical supply chains | Fair wages and safe factories for suppliers |
| Community development | Infrastructure, skills, sanitation, healthcare |
Exam angle
- Form: CSR-1; ministry: MCA; effective date: 14 July 2025.
- Tax sections: 12A, 80G, 10(23C).
- Related term: triple bottom line.