CSR Calculation as per Companies Act 2013
Calculate the mandatory CSR spend — 2% of the average net profit of the three immediately preceding financial years, computed under Section 198. Includes an applicability check and a simplified Section 198 net-profit worksheet.
Net profit — three preceding financial years
Applicability check (immediately preceding FY)
CSR obligation
| Preceding FY (most recent) | ₹10,00,00,000 |
| 2nd preceding FY | ₹15,00,00,000 |
| 3rd preceding FY | ₹20,00,00,000 |
| Average | ₹15,00,00,000 |
| 2% CSR obligation | ₹30,00,000 |
CSR obligation < ₹50 lakh → the Board may discharge CSR Committee functions itself.
How CSR is calculated under Section 135
A company crossing any one threshold in the immediately preceding financial year — net worth ≥ ₹500 crore, turnover ≥ ₹1,000 crore, or net profit ≥ ₹5 crore — must spend at least 2% of the average net profit of the three immediately preceding financial years on CSR activities.
CSR = 2% × (NP₁ + NP₂ + NP₃) ÷ 3
Frequently asked questions
How is CSR calculated as per Companies Act 2013?
CSR = 2% × average net profit of the three immediately preceding financial years, where net profit is computed under Section 198 — not the profit-and-loss figure and not taxable income.
When do CSR provisions apply?
If in the immediately preceding financial year the company had net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more.
When is a CSR Committee required?
Where the CSR obligation exceeds ₹50 lakh a CSR Committee of the Board is required; below that the Board itself may discharge the Committee's functions.
CSR — related searches
- csr calculation as per companies act 2013
- csr calculation as per section 198 of companies act 2013
- csr calculation as per companies act 2013 excel
- calculation of csr as per companies act 2013
- 2 percent csr on average net profit calculator