Schedule VII Explained: What Activities Count as CSR?
A clear guide to the activities eligible for CSR under Schedule VII of the Companies Act, plus the activities that do not qualify.
A company's CSR spending only counts if it goes to activities listed in Schedule VII of the Companies Act, 2013. The list is broad and interpreted liberally, but it has limits. Here is what it covers.
The main Schedule VII categories
- Hunger, poverty and health: eradicating hunger, poverty and malnutrition; promoting health care, including preventive care; sanitation; and safe drinking water.
- Education and skills: education, special education, vocational skills and livelihood projects.
- Gender equality and vulnerable groups: empowering women; homes and hostels for women and orphans; old age homes; and reducing inequality faced by socially and economically backward groups.
- Environment: environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and water.
- Heritage, art and culture: national heritage, restoration of historic sites, public libraries, and promotion of traditional arts and handicrafts.
- Armed forces veterans and their dependants, including war widows.
- Sports: training to promote rural, nationally recognised, Paralympic and Olympic sports.
- Government funds: contributions to the PM's National Relief Fund, PM CARES and other notified funds.
- Research and incubators: technology incubators in approved institutions, and certain research and development projects.
- Rural development projects.
- Slum area development.
- Disaster management, including relief, rehabilitation and reconstruction.
What does not count
- Activities in the normal course of business. Limited exceptions exist for companies doing research and development on new vaccines, drugs and medical devices.
- Activities that benefit only employees and their families.
- Activities outside India, other than training Indian sports personnel.
- Contributions to political parties.
- Sponsorships for marketing benefit.
- Activities carried out to fulfil other statutory obligations.
Choosing among the categories
Most companies concentrate on education and health, which together take the largest share of national CSR. Some of the highest-impact opportunities sit in categories that receive less attention: child nutrition, disaster resilience, safe water and women's livelihoods, especially in underserved states. Our programme design work helps companies match Schedule VII categories with real local needs.
Schedule VII is periodically amended. Check the latest notification before finalising your plan.
