The Companies (Donations to National Funds) Act, 1951

The Companies (Donations to National Funds) Act, 1951 is an Indian law that mandates companies registered under the Companies Act, 1956 to make contributions to national funds for the welfare of the country. The Act specifies that such contributions must be made through the company's profits, and the total amount donated cannot exceed five percent of the net profit earned during the previous financial year. Companies must also disclose the details of their contributions in their annual report. The aim of this Act is to encourage companies to contribute to the development of the country, and to help fund important initiatives such as disaster relief, education, and healthcare.