CSR Violations Not to be Treated as Criminal Offence, Says Nirmala Sitharaman
Addressing the media on measures to boost the economy, Sitharaman said the government respects and honours wealth creators.
New Delhi: Finance Minister Nirmala Sitharaman and and MoS for Finance Anurag Thakur during a press conference in New Delhi, Friday, Aug 23, 2019. (PTI Photo)
New Delhi: Allaying industry concerns, Finance Minister Nirmala Sitharaman on Friday said violations of CSR norms under the companies law will be treated only as a civil liability and not as a criminal offence.
The corporate affairs ministry would review the sections concerned under the Companies Act, she said. Industry has expressed concerns over penal provisions for non-compliance with Corporate Social Responsibility (CSR) requirements in the amended Companies Act, 2013.
Addressing the media on measures to boost the economy, Sitharaman said the government respects and honours wealth creators. "CSR violations... not be be treated as criminal offence and will be civil liability," Sitharaman, who also holds the charge of the corporate affairs ministry, said.
The government has provided companies through revised orders more time for completing ongoing projects as part of their CSR obligations. Under the Act, certain class of profitable companies are required to shell out at least two per cent of their three-year annual average net profit towards CSR activities.
To address concerns over alleged harassment of taxpayers, Sitharaman said it has been decided that from October 1, all notices, summons, and orders of the Income Tax Department would be issued through a centralised computer system and would also have a a computer generated unique Document Identification Number.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Recommended For You
- BSNL Rs 777 Broadband Plan Gets You 50 Mbps Speed And 500GB Data
- Mark The Calendar, Here is When Your iPhone, Watch, iPad and MacBook Get Updated
- 5-Years-Old Recreates 'Up' Moment With Great Grandparents for Birthday Photoshoot
- Renault Kwid Electric Launched In China at Rs 6.22 Lakh, Gets 271Km Electric Range
- Apple TV Plus Shows, Prices Compared with Netflix, Amazon Prime Video, Hotstar, Zee5