The government has proposed to increase the minimum net profit threshold for mandatory corporate social responsibility (CSR) spending by companies to Rs 10 crore. This move aims to ease the burden on companies with nominal profits, allowing them to focus on growth rather than CSR contributions.

In addition, the Corporate Laws (Amendment) Bill, 2026 tabled in Parliament on Monday, proposes to give companies more time to transfer funds to the unspent CSR account for long-term projects.

Currently, under Section 135 of the Companies Act, companies with a turnover above Rs 1,000 crore, a net worth above Rs 500 crore, or a net profit exceeding Rs 5 crore must spend at least 2% of their average net profits from the previous three years on CSR.