More companies likely to come under the mandatory CSR net
On 5th December 2025, a series of amendment bills were introduced in Parliament. One of them was the Companies (Amendment) Bill, 2025 which seeks to amend the Indian Companies Act, 2013 to revise Corporate Social Responsibility (CSR) thresholds and strengthen CSR governance mechanisms.
The Bill aims to lower the CSR applicability thresholds to include companies with a net worth of ₹100 crore, turnover of ₹500 crore, or net profit of ₹3 crore, thereby expanding CSR obligations to medium sized firms.
The Bill also proposes to strengthen CSR governance by requiring a Board level CSR Committee with at least one independent director and one director experienced in CSR planning and implementation.
What will change?
At present, Section 135 of the Indian Companies Act 2013 applies only if a company meets any of the following criteria during the immediately preceding financial year:
- Net Worth – ₹500 crore or more
- Turnover – ₹1,000 crore or more
- Net Profit – ₹5 crore or more
By lowering the applicability thresholds more companies will come under the mandatory CSR net.
Also, the existing regime does not mandate any specific experience requirement for CSR Committee members. The Bill proposes that the CSR Committee must include at least one director having extensive experience in CSR-related matters.
These amendments do not affect NPOs serving as ‘CSR Implementing Agencies.’ The positive impact for NPOs will be the availability of more companies for potential CSR implementing partnerships.
Date of effectiveness
The amendments will take effect once passed by Parliament and notified by the Government.