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A company covered by Section 135 has unspent CSR money relating to an ongoing project fulfilling the prescribed conditions. Which statement is correct?

The unspent amount must be moved within thirty days from the end of the financial year to a special Unspent CSR Account in a scheduled bank, and spent within three financial years of the transfer. If not spent, it goes to a Schedule VII Fund.

  1. AIt must be transferred within thirty days from the end of the financial year to the Unspent Corporate Social Responsibility Account, and spent within three financial years of the transferCorrect
  2. BIt must be transferred within six months to a Fund specified in Schedule VII, and cannot be kept in a bank account
  3. CIt may be carried forward in the company's books for any period without transfer
  4. DIt must be transferred within thirty days to the Unspent CSR Account and spent within one financial year

Explanation

Under sub-section (6), unspent money for an ongoing project goes to a special Unspent CSR Account in a scheduled bank within thirty days from the end of the financial year, and must be spent within three financial years from the transfer, failing which it goes to a Schedule VII Fund within thirty days after the third year. The six-month Fund transfer applies to unspent amounts not relating to ongoing projects.

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