Attempt this previous-year question. The correct option stays hidden until you choose.
With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.
Which of the statements given above is/are correct?
Pick an option to check yourself.
• Correct Answer: A
• Statement 1 is correct: CSR Rules exclude expenditures benefiting only the company or its employees from qualifying as CSR.
• Statement 2 is incorrect: Section 135(5) of the Companies Act, 2013 mandates spending at least 2% of average net profits on CSR.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
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