Independence Day is a red letter day in Indian calendar and this year, it is extra special.
As we are nearing Independence Day (August 15, 2022), the Central government has initiated a campaign named “Har Ghar Tiranga” as part of the Azadi Ka Amrit Mahotsav with the intent to bring a sense of patriotism to the people by encouraging people to host national flag at their homes.
This is to make every Indian part of 75th year Independence Day celebrations – As part of this campaign, the central government has issued a circular to the effect permitting companies to spent funds related to corporate social responsibility (CSR) on this campaign.
Said circular is issued pursuant to Schedule VII of the Companies Act, 2014. This circular is issued as promotion of education relating to culture covered under said Schedule VII
This move to spend CSR funds will play instrumental role in spreading patriotism and significance of three colors in the national flag. As part of this campaign, companies can spend CSR funds on mass scale production and supply of the national flag, outreach and amplification efforts and other related activities.
Normally, every company will have its own CSR committee to develop and execute a plan with respect to spending of CSR funds. The central government has specified a list of eligible activities to spend CSR funds.
Under existing rules, companies need to spend 2% of their average net profit of the preceding three years on CSR activities, provided such companies have a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or above, or net profit of Rs. 5 crore or more.
Source : Financial Express, Ministry of Corporate Affairs
