This page computes the obligation and runs the commencement test on every project you list. Nothing you type leaves your browser.
- Two per cent of the three-year average net profit is owed this year if any one Section 135(1) threshold was crossed last year.
- Unspent money on a commenced multi-year project stays under the company's control for three more financial years.
- Everything else transfers to a Schedule VII fund within six months, and the transferred money cannot fund the company's CSR for the six months that follow.
Was the company caught last year?
Applicability is tested against the immediately preceding financial year, FY 2025-26, and any one threshold is enough. The test runs afresh every year.
Section 2(57): capital plus profit-made reserves and securities premium, less accumulated losses. Revaluation reserves stay out.
On the CSR basis: Section 198, pre-tax, capital and paper gains scrubbed, minus overseas branch profit and dividends from Indian companies already complying with Section 135. A loss goes in as a negative number.
Fill the three figures and the applicability call appears here.
Two per cent of what?
The amount averages the three years before this one. Applicability looked at one year; the money looks at three. A company can be loss-making right now and still owe the average of better years.
Younger than three years, the average runs over the years that exist.
This decides the committee question. A company holding anything in that account needs a CSR Committee whatever the size of this year's obligation, under the Rule 3(1) proviso.
The obligation appears here once the profit figures are in.
What has actually commenced?
List this year's projects. Each one gets the commencement test as you type. The paperwork question, not the spending question, is what decides where the money lands.
The calendar the money runs on
| Date | What happens | Basis |
|---|---|---|
| 31 Mar 2027 | The financial year closes. Whatever is unspent is measured on this day. | s.135(5) |
| 30 Apr 2027 | Unspent money on ongoing projects reaches the company's own Unspent CSR Account, then carries three further financial years to spend. What is still left after that goes out within 30 days. | s.135(6) |
| 30 Sep 2027 | All other unspent money transfers to a Schedule VII fund, with reasons recorded in the Board's report. It cannot fund the company's CSR during the six months that follow the transfer. | 2nd proviso s.135(5); FAQ 7.3 |
Figures on this page follow current law. The Corporate Laws (Amendment) Bill 2026 proposes a 90-day window for the Unspent CSR Account transfer, a ₹10 crore net profit trigger and a ₹1 crore committee exemption. The Joint Parliamentary Committee reported on 3 August 2026; the Bill had not been passed when this page was last updated, 21 September 2026.
The same programme, two very different Marches
A programme designed in September with commencement paper in place -- Board approval as multi-year, a work order issued, timelines and year-wise allocation recorded -- keeps its money under the company's control. The same programme designed in February watches the money leave. Same projects, same intent, different paperwork, opposite outcome. The readiness review walks the current year's plan project by project and puts the paperwork where the money needs it, while there is still a year to work with.
What this page assumes
An April to March financial year, with FY 2026-27 as the year being planned. Applicability tested on FY 2025-26 under Section 135(1) as amended in 2017. Net profit on the Section 198 basis with the Rule 2(1)(h) exclusions. Ongoing project per Rule 2(1)(i), with commencement read per MCA General Circular 14/2021, FAQ 6.2: a work order issued or a contract awarded, not board approval. Local-area preference, Schedule VII fit and the Rule 2(1)(d) exclusions are design questions this calculator does not test. Spend above the obligation can be set off against the three succeeding financial years by Board resolution, excluding surplus arising from CSR activities, under Rule 7(3).
Missing a transfer adds a penalty under Section 135(7): the company pays twice the untransferred amount or ₹1 crore, whichever is less, and every officer in default pays a tenth of that or ₹2 lakh, whichever is less. The forced transfer, not the penalty, is the larger exposure for most companies.
Sources
- Section 135, Companies Act 2013, consolidated with amendment footnotes
- Section 198, calculation of profits
- MCA General Circular 14/2021, FAQs on CSR
- MCA notifications, gazette copies of the CSR Rules amendments
- PRS Legislative Research, the Corporate Laws (Amendment) Bill 2026
Standing note
General information, not legal or professional advice. Positions are as at 21 September 2026 and follow the Companies Act 2013 and the CSR Rules 2014 as amended. Take advice on your own facts. Nothing entered on this page is stored or transmitted; the arithmetic runs entirely in your browser.
Last updated: 21 September 2026.