Rule 8 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 8 requires every company covered by the CSR Rules to include an annual report on CSR in its Board's report, requires larger spenders to commission independent impact assessments, and points to two formats: Annexure I for years before 1 April 2020 and Annexure II for years from that date. This article is as amended up to G.S.R. 415(E) dated 27 May 2026 per the MCA e-book. Later amendments should be checked before you rely on it. For the annual filing that carries these reports, see our annual filing for large companies and section 8 companies service.
The Board's report includes an annual report on CSR in Annexure I or Annexure II, as applicable. A company with average CSR obligation of ten crore rupees or more in the three immediately preceding financial years must have an independent agency assess CSR projects with outlays of one crore rupees or more completed at least one year earlier. The cost may be booked as CSR up to two per cent of the year's CSR expenditure or fifty lakh rupees, whichever is higher.
Rule 8(1) and (2): where the report goes
- Rule 8(1). The Board's report of a company covered by the rules, for any financial year, includes an annual report on CSR with the particulars in Annexure I or Annexure II, as applicable.
- Rule 8(2). For a foreign company, the balance sheet filed under section 381(1)(b) of the Act contains the annual report on CSR in the same formats.
Rule 8(3): impact assessment
| Sub-rule | Provision |
|---|---|
| 8(3)(a) | Every company having average CSR obligation of ten crore rupees or more under section 135(5) in the three immediately preceding financial years must undertake impact assessment, through an independent agency, of its CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before the impact study |
| 8(3)(b) | The impact assessment reports are placed before the Board and annexed to the annual report on CSR |
| 8(3)(c) | A company undertaking impact assessment may book the expenditure towards CSR for that financial year, not exceeding two per cent of the total CSR expenditure for the year or fifty lakh rupees, whichever is higher |
Both limbs of the trigger in (a) must be met: the company-level average and the project-level size and age. The percentage and amount in (c) were substituted in 2022. See our article on impact assessment: ten crore, one crore, one year for more.
A company that subscribes to a zero coupon zero principal instrument is exempt from impact assessment for projects funded by it, under rule 4A(2); see our article on rules 4A and 5.
Annexure I: the older format
Annexure I is headed "Format for the Annual Report on CSR Activities to be included in the Board's Report" and applies to financial years commenced prior to 1 April 2020. It has seven items: a brief outline of the CSR Policy with a web-link; the composition of the CSR Committee; average net profit of the last three financial years; prescribed CSR expenditure (two per cent of that amount); details of CSR spent (total to be spent, unspent, and a project-wise table with outlay, spend and direct or implementing agency); reasons for not spending the two per cent; and a responsibility statement of the CSR Committee. It is signed by the Chief Executive Officer, Managing Director or Director, the Chairman of the CSR Committee and, for a foreign company, the person under section 380(1)(d). It was inserted by the 2021 amendment so that older years can still be reported.
Annexure II: the format for years from 1 April 2020
Annexure II applies to financial years commencing on or after 1 April 2020. Its nine items, as printed:
| Item | Heading |
|---|---|
| 1 | Brief outline on CSR Policy of the Company |
| 2 | Composition of CSR Committee (name, designation or nature of directorship, meetings held and attended) |
| 3 | Web-link(s) where the Committee composition, CSR Policy and approved projects are disclosed on the company's website |
| 4 | Executive summary with web-link(s) of impact assessment of CSR projects under rule 8(3), if applicable |
| 5 | (a) Average net profit under section 135(5); (b) two per cent of it; (c) surplus from previous years' CSR projects; (d) amount required to be set off, if any; (e) total CSR obligation for the year [(b)+(c)-(d)] |
| 6 | (a) Amount spent on CSR projects (ongoing and other); (b) administrative overheads; (c) impact assessment; (d) total spent [(a)+(b)+(c)]; (e) amount spent or unspent, with the Unspent CSR Account and Schedule VII fund transfers; (f) excess amount for set-off, with the five-line computation |
| 7 | Details of unspent CSR amount for the preceding three financial years |
| 8 | Whether any capital assets were created or acquired through CSR, with details of each asset and the registered owner, including the CSR Registration Number if applicable |
| 9 | Reasons, if the company has failed to spend two per cent of the average net profit |
The format is signed by the Chief Executive Officer, Managing Director or Director, the Chairman of the CSR Committee and, wherever applicable, the person specified under section 380(1)(d). See our posts on the Annexure II format and on how to file Form CSR-2. The rule itself prints the Annexure forms; the Rules' own "FORM" entry is only a link.
CSR-2 and the Accounts Rules
Form CSR-2 is an Accounts Rules form, filed with the financial statements. Its e-form was substituted in 2025; see our article on rules 10 to 12 of the Accounts Rules. The CSR disclosure in the Board's report is in rule 9 of the Accounts Rules: see rules 8A and 9.
A worked example
Lakeview Pharma Limited has an average CSR obligation of rupees twelve crore over the three preceding financial years. A completed educational project, which cost rupees one and a half crore, ended more than a year ago. The company engages an independent agency to assess it, places the report before the Board and annexes it to the annual report on CSR. If the total CSR expenditure for the year is rupees twelve crore, two per cent is rupees twenty-four lakh, and fifty lakh rupees is higher, so up to rupees fifty lakh of the assessment cost may be booked as CSR expenditure. The report in Annexure II shows the summary and web-link at item 4.
Need help with CSR reporting?
An impact assessment commissioned late, or an Annexure II with a missing set-off computation, can hold up the Board's report. Our annual filing for large companies and section 8 companies team can prepare the annual report on CSR and coordinate the independent assessment.
Key takeaways
- The Board's report carries an annual report on CSR in Annexure I (years before 1 April 2020) or Annexure II (years from that date).
- Foreign companies place it in the balance sheet filed under section 381(1)(b).
- Impact assessment applies at average CSR obligation of ten crore rupees or more, to projects of one crore rupees or more completed at least one year earlier, by an independent agency.
- The assessment cost may be booked up to two per cent of CSR expenditure or fifty lakh rupees, whichever is higher.
- Annexure II has nine items, including surplus, set-off, unspent amounts and capital assets.
Read next
- Rules 7 and 9: CSR expenditure, set-off and website display
- Rules 8A and 9 of the Accounts Rules: the CSR disclosure
- Impact assessment under rule 8: ten crore, one crore, one year
- Annual report on CSR activities: Annexure II format
Disclaimer: Based on the Companies Act, 2013 rules (and the Companies (Auditor's Report) Order, 2020) named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.