CSR (Corporate Social Responsibility) obligations under Section 135 of the Companies Act, 2013 became effective from the financial year 2014-15 (Assessment Year 2015-16). This means that companies meeting the prescribed CSR thresholds were required to start spending on CSR activities and report these expenditures in their annual reports beginning with FY 2014-15.

Key Points:

• For Existing Companies:
  Companies that were in operation before the implementation of CSR provisions had to start complying from FY 2014-15.

• For Newly Incorporated Companies:
  A company incorporated after CSR provisions came into force will generally have to start its CSR activities either in the financial year of its incorporation or in the immediately following financial year, as per the guidelines issued by the Ministry of Corporate Affairs.

• Reporting Requirements:
  CSR details, including expenditure, must be disclosed in the Directors’ Report as part of the Annual Report filed with the Registrar of Companies.