{"id":33479,"date":"2026-11-03T02:13:13","date_gmt":"2026-11-02T20:43:13","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=33479"},"modified":"2026-11-03T02:19:17","modified_gmt":"2026-11-02T20:49:17","slug":"csr-policy-schedule-vii-csr-implementation-activities","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/","title":{"rendered":"CSR Policy: Schedule VII &#038; CSR Implementation Activities"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6ae91056cea35\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6ae91056cea35\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#CSR_Policy_Activities_under_Schedule_VII_and_CSR_Implementation_through_Eligible_Agencies\" >CSR Policy: Activities under Schedule VII and CSR Implementation through Eligible Agencies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#New_CSR_Activity_Investment_in_ZCZP_Instruments\" >New CSR Activity: Investment in ZCZP Instruments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#What_is_a_ZCZP_Instrument\" >What is a ZCZP Instrument?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#CSR_Implementation_under_Rule_41\" >CSR Implementation under Rule 4(1)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Eligible_CSR_Implementing_Agencies\" >Eligible CSR Implementing Agencies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Category_A_Entity_Established_by_the_Company\" >Category (A): Entity Established by the Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Category_B_Entity_Established_by_Government\" >Category (B): Entity Established by Government<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Category_C_Statutory_Bodies_Created_by_Law\" >Category (C): Statutory Bodies Created by Law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Category_D_Independent_Organizations_with_Proven_Track_Record\" >Category (D): Independent Organizations with Proven Track Record<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Why_These_Conditions_Are_Important\" >Why These Conditions Are Important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Key_Conditions_Before_Engaging_an_Implementing_Agency\" >Key Conditions Before Engaging an Implementing Agency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Examples_of_Eligible_CSR_Projects\" >Examples of Eligible CSR Projects :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Impact_of_the_2026_Amendment\" >Impact of the 2026 Amendment :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Benefits_for_NPOs\" >Benefits for NPOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Benefits_for_Society\" >Benefits for Society<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33481\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/11\/Designer-10.png\" alt=\"CSR Policy: Activities under Schedule VII and CSR Implementation\" width=\"1024\" height=\"1536\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/11\/Designer-10.png 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/11\/Designer-10-200x300.png 200w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/11\/Designer-10-683x1024.png 683w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/11\/Designer-10-768x1152.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/11\/Designer-10-800x1200.png 800w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CSR_Policy_Activities_under_Schedule_VII_and_CSR_Implementation_through_Eligible_Agencies\"><\/span><span style=\"color: #000080;\"><strong>CSR Policy: Activities under Schedule VII and CSR Implementation through Eligible Agencies<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"padding-left: 40px;\">The framework of Corporate Social Responsibility (CSR) under the Companies Act, 2013 requires eligible companies to spend at least 2% of their average net profits on specified social welfare activities listed in Schedule VII. Recent amendments have expanded the scope of permissible CSR activities and clarified the entities through which CSR projects may be implemented.<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"New_CSR_Activity_Investment_in_ZCZP_Instruments\"><\/span><span style=\"color: #000080;\"><strong> New CSR Activity: Investment in ZCZP Instruments<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<ul>\n<li>Amendment in Schedule VII : The Ministry of Corporate Affairs (MCA), vide notification dated 27 May 2026, inserted a new item (xiii) in Schedule VII.<\/li>\n<li>New Eligible CSR Activity : Subscription to Zero Coupon Zero Principal (ZCZP) Instruments listed on the Social Stock Exchange (SSE). This means companies can now use a portion of their CSR budget to subscribe to ZCZP instruments issued by eligible Not-for-Profit Organizations (NPOs) registered on a Social Stock Exchange.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_a_ZCZP_Instrument\"><\/span><span style=\"color: #000080;\"><strong>What is a ZCZP Instrument?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A Zero Coupon Zero Principal Instrument Does not pay any interest, Does not repay principal, Is issued for social impact purposes, Is treated as a security under SEBI regulations and Helps NPOs raise funds for social projects. The return for investors is not financial but social impact.<\/p>\n<p><strong>Practical Example : <\/strong>Suppose an SSE-registered NPO issues ZCZP Instruments to fund Rural healthcare projects, Education initiatives and Women empowerment programs. A company may subscribe to such instruments and treat the investment as eligible CSR expenditure (subject to prescribed limits).<\/p>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"CSR_Implementation_under_Rule_41\"><\/span><span style=\"color: #000080;\"><strong> CSR Implementation under Rule 4(1)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The Board of Directors remains ultimately responsible for ensuring that CSR obligations are fulfilled. Under Rule 4(1) of the Companies (CSR Policy) Rules, 2014, CSR activities may be undertaken:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Directly by the Company : The company itself may execute and monitor CSR projects.<\/li>\n<li>Through Eligible Implementing Agencies : A company may also carry out CSR activities through specified external agencies.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"3\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Eligible_CSR_Implementing_Agencies\"><\/span><span style=\"color: #000080;\"><strong> Eligible CSR Implementing Agencies<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The Rules specify four categories of organizations that can act as CSR implementation agencies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Category_A_Entity_Established_by_the_Company\"><\/span><span style=\"color: #000080;\"><strong>Category (A): Entity Established by the Company<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">CSR projects can be undertaken through Section 8 Company, Registered Public Trust, Registered Society, provided such entities:<\/p>\n<p style=\"padding-left: 40px;\">Income Tax Eligibility Must be Exempt under Section 10(23C)(iv), (v), (vi) or (via); or Registered under Section 12A; and Approved under Section 80G.<\/p>\n<p style=\"padding-left: 40px;\">Ownership Condition : The entity should be established By the company alone; or Jointly with one or more companies. Example ABC Ltd. forms: ABC Foundation (Section 8 Company) Registered under 12A and 80G. and CSR spending through ABC Foundation will be permissible.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Category_B_Entity_Established_by_Government\"><\/span><span style=\"color: #000080;\"><strong>Category (B): Entity Established by Government<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">CSR activities may also be carried out through Section 8 Companies, Registered Public Trusts, Registered Societies established by Central Government; or State Government. <strong>Example <\/strong>Projects implemented through a government-promoted trust working on Skill development, Healthcare and Environmental protection may qualify.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Category_C_Statutory_Bodies_Created_by_Law\"><\/span><span style=\"color: #000080;\"><strong>Category (C): Statutory Bodies Created by Law<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">CSR projects may be implemented through: Any entity established under an Act of Parliament or State Legislature. Explanation The term &#8220;entity&#8221; refers to Statutory authorities Boards, Development corporations, Government institutions specifically created through legislation. Example : Entities established for Rural development, Infrastructure development, Water conservation, Social welfare through specific Acts can receive CSR funding.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Category_D_Independent_Organizations_with_Proven_Track_Record\"><\/span><span style=\"color: #000080;\"><strong>Category (D): Independent Organizations with Proven Track Record<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">CSR activities may be undertaken through Section 8 Companies, Registered Public Trusts and Registered Societies having: Income Tax Qualification Registration under Section 12A and Approval under Section 80G and Experience Requirement Minimum 3-year track record in similar CSR activities. Example A charitable trust successfully conducting Education programs, Healthcare camps, Environmental projects for more than 3 years can act as an implementation agency.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_These_Conditions_Are_Important\"><\/span><span style=\"color: #000080;\"><strong>Why These Conditions Are Important?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Government intends to ensure:<\/p>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000080;\"><strong>Transparency : <\/strong><\/span>Only regulated and compliant organizations receive CSR funds.<\/p>\n<p style=\"padding-left: 40px;\"><strong><span style=\"color: #000080;\">Accountability :<\/span> <\/strong>Organizations must demonstrate experience and credibility.<\/p>\n<p style=\"padding-left: 40px;\"><strong><span style=\"color: #000080;\">Proper Utilization :<\/span> <\/strong>CSR funds are deployed for genuine social welfare activities.<\/p>\n<p style=\"padding-left: 40px;\"><strong><span style=\"color: #000080;\">Tax Compliance :<\/span> <\/strong>Organizations must possess specified Income-tax registrations and approvals.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Conditions_Before_Engaging_an_Implementing_Agency\"><\/span><span style=\"color: #000080;\"><strong>Key Conditions Before Engaging an Implementing Agency<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">The Board should verify \u00a0Registration status, \u00a0Section 12A registration, \u00a080G approval, Nature of organization, \u00a0Experience and track record, \u00a0Objectives matching Schedule VII activities, \u00a0Compliance history and Financial transparency.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Examples_of_Eligible_CSR_Projects\"><\/span><span style=\"color: #000080;\"><strong>Examples of Eligible CSR Projects : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">Through eligible agencies, companies may undertake Promotion of education, Healthcare and sanitation, Rural development, Women empowerment, Skill development, Environmental sustainability and Protection of national heritage, Disaster relief, Hunger eradication, Contribution to Social Stock Exchange projects through ZCZP instruments<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Impact_of_the_2026_Amendment\"><\/span><span style=\"color: #000080;\"><strong>Impact of the 2026 Amendment : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The addition of ZCZP Instruments has significantly expanded the CSR ecosystem.<\/p>\n<p><span style=\"color: #000080;\"><strong>Benefits for Companies <\/strong><\/span><\/p>\n<ul>\n<li>Additional avenue for CSR deployment.<\/li>\n<li>Access to professionally managed social projects.<\/li>\n<li>Greater transparency through Social Stock Exchange mechanisms.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Benefits_for_NPOs\"><\/span><span style=\"color: #000080;\"><strong>Benefits for NPOs<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Alternative source of social funding.<\/li>\n<li>Improved fundraising opportunities.<\/li>\n<li>Increased visibility and accountability.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Benefits_for_Society\"><\/span><span style=\"color: #000080;\"><strong>Benefits for Society<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>More structured social impact financing.<\/li>\n<li>Better monitoring of social projects.<\/li>\n<li>Increased flow of CSR funds to deserving causes.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span><strong>Key Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Schedule VII now includes subscription to ZCZP Instruments on the Social Stock Exchange as an eligible CSR activity.<\/li>\n<li>CSR projects may be undertaken directly by the company or through eligible implementation agencies.<\/li>\n<li>Implementing agencies may be Company-established Section 8 companies, trusts, or societies; Government-established entities; Statutory bodies created by law, Independent organizations with a minimum 3-year track record.<\/li>\n<li>Most implementing agencies must possess valid 12A registration and 80G approval.<\/li>\n<li>Companies must conduct due diligence before routing CSR funds through any implementing agency.<\/li>\n<li>The 2026 amendment strengthens the integration of CSR funding with India&#8217;s rapidly evolving social finance ecosystem.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>CSR Policy: Activities under Schedule VII and CSR Implementation through Eligible Agencies The framework of Corporate Social Responsibility (CSR) under the Companies Act, 2013 requires eligible companies to spend at least 2% of their average net profits on specified social welfare activities listed in Schedule VII. Recent amendments have expanded the scope of permissible CSR &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10512],"tags":[10602],"class_list":["post-33479","post","type-post","status-publish","format-standard","hentry","category-social-security-code-2020","tag-csr-policy"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.2 - aioseo.com -->\n\t<meta name=\"description\" content=\"CSR Policy, Corporate Social Responsibility, CSR Activities under Schedule VII, CSR Implementation, CSR Implementing Agency, CSR Fillings, CSR Spending in India\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Rajput Jain &amp; Associates\"\/>\n\t<meta name=\"keywords\" content=\"csr policy,social security code 2020\" \/>\n\t<link rel=\"canonical\" href=\"https:\/\/carajput.com\/blog\/csr-policy-schedule-vii-csr-implementation-activities\/\" \/>\n\t<meta name=\"generator\" content=\"All in One SEO (AIOSEO) 5.0.2\" \/>\n\t\t<meta property=\"og:locale\" content=\"en_US\" \/>\n\t\t<meta property=\"og:site_name\" content=\"Rajput Jain &amp; 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