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CSR Obligation Calculator (§135)

India's 2% CSR obligation from three years' net profits, with shortfall transfer rules.

Companies crossing any §135 threshold (net worth ₹500cr / turnover ₹1000cr / net profit ₹5cr) must spend 2% of the trailing-three-year average net profit on Schedule VII activities. Enter the three years and this year's spend — the tool computes the obligation and flags the unspent-amount transfer rules that now carry penalties.

₹20.0 lakh
CSR obligation (2% of 3-yr avg)
₹5.0 lakh
Shortfall
3-year average net profit₹10.00 crore
Applicabilitynet worth ≥ ₹500cr OR turnover ≥ ₹1000cr OR net profit ≥ ₹5cr
Unspent (non-ongoing projects)transfer to Schedule VII fund within 6 months
Unspent (ongoing projects)transfer to Unspent CSR Account within 30 days of FY end

Section 135, Companies Act 2013: companies over the thresholds must spend 2% of the average net profits of the three preceding years on Schedule VII activities. Unspent amounts now carry mandatory transfer obligations and penalties — the "comply or explain" era ended in 2021.

Sources: Companies Act 2013 §135 + Schedule VII; CSR Rules 2014 (as amended 2021)

Indicative estimates only, not financial or investment advice. Tariffs, subsidies and net-metering rules change — verify with your DISCOM, utility or installer before committing.

Use the free CSR Obligation Calculator (§135) online — India's 2% CSR obligation from three years' net profits, with shortfall transfer rules. Runs instantly in your browser: no signup, no upload, mobile-friendly.

About CSR Obligation Calculator (§135)

Companies crossing any §135 threshold (net worth ₹500cr / turnover ₹1000cr / net profit ₹5cr) must spend 2% of the trailing-three-year average net profit on Schedule VII activities. Enter the three years and this year's spend — the tool computes the obligation and flags the unspent-amount transfer rules that now carry penalties.

How to use CSR Obligation Calculator (§135)

  1. 1Enter net profit (Section 198 basis) for the three preceding years.
  2. 2Enter this year's CSR spend.
  3. 3Read the obligation, surplus/shortfall and the transfer rules that apply.

Why use CSR Obligation Calculator (§135)?

  • Section 135 math exactly as the Act computes it — 2% of the 3-year average
  • Shortfall transfer rules (post-2021 penalties) spelled out
  • Applicability thresholds checked alongside
  • Lakh/crore handled the way Indian finance teams think

Frequently asked questions

Which companies must spend on CSR in India?+

Any company crossing, in the preceding financial year: net worth ₹500 crore, OR turnover ₹1,000 crore, OR net profit ₹5 crore. Crossing any one triggers Section 135 — a CSR committee, policy and the 2% spend obligation computed here.

How is the 2% CSR obligation calculated?+

2% of the average net profits (Section 198 computation — broadly PBT with specified adjustments) of the three immediately preceding financial years. Loss years enter the average as negatives; this calculator handles the arithmetic and the lakh/crore conversions.

What happens to unspent CSR money now?+

Since 2021, real teeth: unspent amounts for ongoing projects move to a dedicated Unspent CSR Account within 30 days of year-end (spend within 3 years); other unspent amounts go to a Schedule VII fund within 6 months. Non-compliance draws monetary penalties — 'comply or explain' is gone.

Does excess CSR spend carry forward?+

Yes — spend beyond 2% can be set off against the obligation for up to three succeeding years (board resolution required). The surplus figure this tool shows is therefore a real asset; document it in the CSR annual report.

Embed CSR Obligation Calculator (§135) on your website

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