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Microlesson · 5-min read

CSR – Schedule VII Activities

## Activities Specified under Schedule VII

Schedule VII lists the activities that companies may include in their CSR Policies. Schedule VII is to be interpreted liberally so as to capture the essence of the subjects.

### List of Permitted Activities

#Activity
1Eradicating hunger, poverty & malnutrition; promoting health care (incl. preventive); sanitation (incl. contribution to Swachh Bharat Kosh); safe drinking water
2Promoting education — including special education, employment-enhancing vocational skills (esp. for children, women, elderly, differently abled); livelihood enhancement
3Promoting gender equality, empowering women; homes/hostels for women & orphans; old age homes, day care for senior citizens; reducing inequalities of socially & economically backward groups
4Environmental sustainability, ecological balance, protection of flora/fauna, animal welfare, agro-forestry, conservation of natural resources, soil/air/water quality; contribution to Clean Ganga Fund
5Protection of national heritage, art & culture — restoration of historic buildings/sites; public libraries; promotion of traditional arts & handicrafts
6Benefit of armed forces veterans, war widows and their dependents
7Training to promote sports — rural, nationally recognised, paralympic, Olympic
8Contribution to PM's National Relief Fund / PM CARES Fund / any other fund set up by the Central Government for socio-economic development & welfare of SC/ST/OBC/minorities/women
9Contribution to incubators funded by Central/State Government or PSUs; contributions to publicly funded universities, IITs, National Laboratories and autonomous bodies under ICAR, ICMR, CSIR, DAE, DRDO, DBT, DST, MeitY — engaged in research in science, technology, engineering and medicine aimed at promoting SDGs
10Rural development projects
11Slum area development
12Disaster management — relief, rehabilitation and reconstruction activities

### COVID-19 Clarification (MCA General Circulars)

  • Spending of CSR funds for COVID-19 is an eligible CSR activity.
  • Awareness campaigns / public outreach on the COVID-19 Vaccination programme, setting up makeshift hospitals & temporary COVID care facilities → eligible under items (1), (2) and (12) of Schedule VII (health care, education, disaster management).
  • General Circular 09/2021 (5 May 2021): In continuation of GC 10/2020 (23.03.2020), further clarified that spending on:
  • 'Creating health infrastructure for COVID care'
  • 'Establishment of medical oxygen generation and storage plants'
  • 'Manufacturing and supply of oxygen concentrators, ventilators, cylinders and other medical [equipment]'

…are eligible CSR activities under Schedule VII.

Worked example

### Example 1

Example 1: A company contributes ₹10 lakh to the Clean Ganga Fund. ✅ Eligible CSR under item (4).

### Example 2

Example 2: A company funds an IIT to do research on renewable energy aimed at SDGs. ✅ Eligible under item (9).

### Example 3

Example 3: A company sets up a temporary COVID care facility with 50 beds during the second wave. ✅ Eligible under item (1)/(12) per MCA clarification.

### Example 4

Example 4: A company funds restoration of a heritage building in Hampi. ✅ Eligible under item (5).

### Example 5

Example 5: A company contributes ₹5 crore to PM CARES Fund. ✅ Eligible under item (8).

⚠️ Common exam mistakes

  • Believing Schedule VII is an exhaustive list interpreted literally — MCA has clarified it is to be liberally interpreted.
  • Treating contribution to Chief Minister's Relief Fund / State Relief Fund as Schedule VII item (8) — only PM National Relief Fund / PM CARES / Central Government Funds qualify under item (8).
  • Forgetting that contributions to universities/labs (item 9) must be aimed at promoting Sustainable Development Goals (SDGs).
  • Including international sports training (item 7 covers rural, national, paralympic, Olympic — not for-profit private sports).
  • Treating COVID-19 spending as ineligible — MCA has expressly clarified it is eligible CSR.
Bare-Act text Schedule VII · Companies Act, 2013 · click to expand
Activities which may be included by companies in their Corporate Social Responsibility Policies: (i) eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water; (ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects; … (xii) disaster management, including relief, rehabilitation and reconstruction activities.
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