New Bill proposes easier CSR, buyback guidelines

More growth capital for less profitable firms

- MANU KAUSHIK

THE GOVERNMENT HAS proposed to increase the minimum net profit threshold for mandatory corporate social responsibility (CSR) spending by companies to ₹10 crore. This move aims to ease the burden on companies with nominal profits, allowing them to focus on growth rather than CSR contributions. In addition, the Corporate Laws (Amendment) Bill, 2026 tabled in Parliament on Monday, proposes to give firms more time to transfer funds to the unspent CSR account for long-term projects.

Currently, under Section 135 of the Companies Act, companies with a turnover above ₹1,000 crore, a net worth above ₹500 crore, or a net profit exceeding ₹5 crore must spend at least 2% of their average net profits from the previous three years on CSR.

“The goal is to drive impactful CSR spending, not overburden companies with governance and spending,” said Anjali Maheshwari, managing partner at AKM Global.