Firms can offset excess FY20 funds to PM CARES against FY21 CSR spend

Companies that contributed to the PM CARES fund in excess of their minimum Corporate Social Responsibility (CSR) obligations on March 31, 2020 will be able to offset the amount against their CSR expenditure in FY21.

Firms that have already done so will not be considered in violation of CSR norms, subject to certain conditions, the ministry of corporate affairs (MCA) said. The MCA had received several representations seeking offsetting of excess CSR funds contributed to the PM CARES fund in FY20 as the ministry had appealed to the chief executives of the top 1,000 companies to contribute generously to the fund on March 30 last year.

“It is hereby clarified that where a company has contributed any amount to ‘PM CARES Fund’ on 31.03.2020, which is over and above the minimum amount as prescribed under Section 135(5) of the Companies Act, 2013 for FY 2019-20, and such excess amount or part thereof is offset against the requirement to spend under Section 135(5) for FY 2020-21 in terms of the aforementioned appeal, then the same shall not be viewed as a violation,” the circular said.


The clarification came with the condition that the offset being claimed should have factored any unspent CSR amount from previous financial years.

The company would have to certify that the contribution to PM CARES fund was indeed made on March 31, 2020.