MCA Announces New Deadline for FORM CSR-2 Filing: March 31, 2025

Companies now have until March 31, 2025, to comply with the Ministry of Corporate Affairs' (MCA) recent announcement of an extension for filing FORM CSR-2. Many businesses that were having trouble meeting deadlines have found respite from this action, which also ensures that the Companies Act of 2013's Corporate Social Responsibility (CSR) standards are being met.

FORM CSR-2: What is it?

The MCA requires businesses to provide information about their Corporate Social Responsibility (CSR) initiatives on FORM CSR-2. According to the Companies (Corporate Social Responsibility Policy) Rules, 2014, some businesses must declare to the MCA how much of their profits they spend on CSR initiatives.

Who Must Submit FORM CSR-2?

According to Section 135 of the Companies Act of 2013, businesses that satisfy any of the following requirements are required to submit FORM CSR-2:

• Businesses that have a net worth of at least Rs. 500 crore.
• A turnover of at least Rs. 1,000 crore.
• A net profit of at least Rs. 5 crore in the fiscal year that just ended.

These businesses must:

• Establish a committee for CSR.
• Allocate 2% of their three-year average net profits to CSR initiatives.
• Submit FORM CSR-2 once a year to report CSR projects and expenses.

Key Points of the Extended Deadline

1. Gives Businesses More Time: Companies now have more time to gather and report on proper CSR data thanks to the extension.
2. Guarantees Complete Adherence: Enables businesses to concentrate on meeting CSR responsibilities before reporting.
3. Lowers Penalties for Non-Compliance: Helps businesses avoid penalties under Section 135 by submitting on time.
4. Promotes Openness in CSR Reporting: Businesses can now provide accurate information and increase the transparency of CSR disclosures.

How to Submit FORM CSR-2

Follow these steps to ensure compliance:

• Log in to the MCA portal and access the FORM CSR-2 section.
• Enter details such as the company name, CIN, and fiscal year.
• Provide information on total CSR obligations, actual expenditure, unspent funds, and ongoing project statuses.
• Upload relevant documents like the CSR policy, project details, and expenditure proof.
• Submit the form and download the acknowledgment for records.

Effects of the Extension

This extension benefits various stakeholders:

• For Businesses: Ensures accuracy in CSR reporting and reduces compliance pressure.
• For Professionals: Provides CAs and CSs with more time to assist their clients.
• For the Economy: Promotes well-organized CSR initiatives, resulting in meaningful social development projects.

Conclusion

The FORM CSR-2 filing deadline extension until March 31, 2025, is a welcome relief for companies and professionals alike. Businesses should utilize this extra time to streamline their CSR activities, ensure accuracy in reporting, and contribute to societal progress.

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