Contributions made to PM Cares Fund to Qualify as CSR Expenditure
The Companies Act enumerates activities that may be undertaken by companies in discharge of their Corporate Social Responsibility (“CSR”) obligations. Item no. (viii) of the Schedule VII of the Companies Act, inter alia, provides that contribution to any fund set up by the Central Government for socio-economic development and relief qualifies as CSR expenditure.
The Government of India has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (“PM-CARES”) Fund to provide relief to those affected by any kind of emergency or distress situation, such as that posed by COVID-19 pandemic.Accordingly, any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act.