Industry body FICCI has viewed that the new recent CSR amendment will only encourage tick -box compliance.

In an press statement FICCI said CSR is embedded in the ethos of Indian corporate sector and after introduction of CSR provision in the Companies Act 2013, bulk of the companies have been meaningfully discharging their obligation to society.

However, the new requirement of transferring unspent CSR amounts to Govt-specified funds and introduction of penalties for non-compliance vitiates the very reason for which corporate sector was entrusted with this obligation i.e. to engage with its ecosystem and help nurture it.

"CSR is not just about spending but making an impact and finding sustainable solutions. The recent amendment will only encourage tick -box compliance.”

FICCI added that it is also not aligned with the Govt’s recent measures to decriminalise non-compliance.

“Further, it has been a long-standing industry demand to make CSR expenditure tax-deductible. This has become even more relevant now given that the CSR obligation has become mandatory and therefore needs to be treated like any other business expenditure," said FICCI President Sandip Somany.