In CSR if there is balance in some project and over all CSR Obligation is fulfilled. Then whether the same need to be transferred to unspent account?
No, if the company’s overall CSR obligation for the financial year has been fully met, then the balance amount from a specific project does not need to be transferred to an Unspent CSR Account.
How It Works
The requirement to transfer funds to an “Unspent CSR Account” is triggered only when the company fails to spend its total CSR amount for the financial year.
- Your Scenario: Your company had a total CSR spending target (e.g., ₹2 crores) and you successfully spent the full ₹2 crores on approved CSR activities. The fact that one project finished under budget while another went over is a matter of internal fund management. You simply reallocated funds between approved projects.
- When the Rule Applies: The “Unspent CSR Account” rule applies if, for example, your company’s total CSR target was ₹2 crores but you only spent ₹1.8 crores. The remaining ₹20 lakhs would then be considered “unspent” and would have to be transferred.
In your case, since the overall CSR obligation was fulfilled, you have complied with the law. No further action is needed for the project that came in under budget.
The rules regarding the transfer of unspent funds are detailed in Section 135, sub-sections (5) and (6)