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Himalaya Cements Ltd had Rs 1.2 crore unspent on an ongoing project at the end of FY 2024-25 and transferred it to its Unspent CSR Account within thirty days. Under section 135(6), by when must it spend this amount, failing which it must move it to a Schedule VII Fund?

The company has three financial years from the date of transfer to the Unspent CSR Account to spend the amount. If it remains unspent, it must be moved to a Schedule VII Fund within thirty days from completion of the third financial year.

  1. AWithin three financial years from the date of transfer to the Unspent CSR AccountCorrect
  2. BWithin one financial year from the date of transfer
  3. CWithin six months of the end of the financial year
  4. DWithin five years from commencement of the project

Explanation

Section 135(6) allows the amount to be spent within three financial years from the date of transfer. If not spent, it must be transferred to a Schedule VII Fund within thirty days from completion of the third financial year. Six months applies to non-ongoing unspent amounts.

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