Companies' expenditure to deal with the coronavirus outbreak will be considered as CSR activities, according to the government.

Over 400 people have been infected by coronavirus and at least seven people have died while many states have announced lockdown to curb spread of infections.

Under the companies law, certain classes of profitable entities have to shell out at least two per cent of their three-year annual net profit towards Corporate Social Responsibility (CSR) activities in a particular financial year.

'It is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity,' the corporate affairs ministry said in a circular.

The ministry is implementing the Companies Act.

Corporate affairs minister Nirmala Sitharaman tweeted the circular.

'In view of the spread of novel #CoronaVirus in India, its declaration as pandemic by the WHO, and decision of Government of India to treat this as notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity...,' she tweeted quoting the circular.