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Under section 135(6) of the Companies Act, 2013, within what period must a company spend an ongoing project’s unspent amount transferred to the Unspent CSR Account?

Question and options

Under section 135(6) of the Companies Act, 2013, within what period must a company spend an ongoing project’s unspent amount transferred to the Unspent CSR Account?

  1. Two financial years from the date of transfer

  2. Four financial years from the date of transfer

  3. One financial year from the date of transfer

  4. Three financial years from the date of transfer

Answer and explanation

Correct answer: D - Three financial years from the date of transfer

Under section 135(6) of the Companies Act, 2013, an unspent amount relating to an ongoing project is transferred within 30 days of the end of the financial year to an Unspent Corporate Social Responsibility Account in a scheduled bank. It must be spent within three financial years from the date of transfer, failing which the balance goes to a Schedule VII fund within 30 days.

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