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CS Professional · CSR and Social Governance · Guidelines on CSR

Kaveri Engineering Ltd has an unspent CSR amount of Rs 40 lakh relating to an ongoing project for FY 2026-27. By when must it be moved to the Unspent Corporate Social Responsibility Account, and within what period must it then be spent?

The amount must be transferred to the Unspent CSR Account within thirty days from the end of the financial year and spent within three financial years from the date of transfer, failing which it goes to a Schedule VII Fund.

  1. AWithin six months of year end; spent within two years
  2. BWithin thirty days from the end of the financial year; spent within three financial years from the date of transferCorrect
  3. CWithin thirty days from the end of the financial year; spent within one year
  4. DWithin ninety days of year end; spent within five years

Explanation

Section 135(6) requires transfer to the Unspent CSR Account in a scheduled bank within thirty days from the end of the financial year, and spending within three financial years from the date of transfer. Failing that, the balance goes to a Schedule VII Fund within thirty days of completion of the third financial year.

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