New Delhi : The Ministry of Corporate Affairs (MCA) has tightened corporate social responsibility (CSR) compliance in India by shortening the deadline for submitting CSR returns. Companies must now file their CSR-2 return for the financial year 2023-24 by December 31, 2024.

This CSR-2 return must be filed separately from the AOC-4, which is the annual return form due within 30 days following the company’s annual general meeting (AGM). Previously, for FY 2022-23, companies had until March 31, 2024, to submit their CSR-2 returns.

Experts in corporate law have noted inconsistencies where CSR figures reported in financial statements (via AOC-4) did not match the data submitted in CSR-2 filings. The MCA’s decision to reduce the compliance period aims to enhance governmental oversight and mitigate the risk of malpractice.

These revised timelines are expected to improve transparency and accuracy, requiring companies to maintain separate records for AOC-4 and CSR-2 submissions.

In 2022, the Companies (Accounts) Rules were amended to include CSR-2 as an addendum to AOC-4. However, in 2023, this requirement was updated to necessitate separate CSR-2 filings after AOC-4 submissions for FY 2022-23, with a deadline of March 31, 2024. The most recent amendment establishes the CSR-2 filing deadline for FY 2023-24 as December 31, 2024.

Form CSR-2, introduced in 2022, requires companies to report details of their CSR initiatives, including the projects undertaken, CSR committees, expenditures, and any unspent funds.