sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 Government extends sale of pre-GST goods with stickers of revised price till July 31
 All 7 ITR forms for assessment year 2018-19 activated for e-filing: Income Tax Department
 Check if new salary structure is income tax efficient
 GST refund drive extended till June 16
 5 income tax returns filing mistakes you must avoid
 Your complete guide to file income tax return
 Input Tax Credit refund drive till June 14
 File Your Income Tax Return for FY 2017-18 Immediately, Know Why
 Which ITR form to file if income is in dollars?
 5 investment lessons to maximize returns; here is all you need to know
 Deadline for filing first instalment of advance tax ends 15 June

Tax break norm deals PFs a double blow
January, 30th 2007

Kumar (name changed), who heads finance in a diversified conglomerate, is extremely worried about his companys Rs 100-crore provident fund (PF) corpus. 
 
Based on a 2006 budget amendment to the Income Tax Act, he has to get his companys provident fund trust certified by central and regional provident fund commissioners under the labour ministry to earn an income tax break. 
 
Like Kumar, hundreds of corporate provident fund trust managers across India managing thousands of crores of rupees are in a fix following last years amendment. Several have been paid visits by touts offering to help them obtain these approvals for a fee. 
 
Corporate PF trusts cover employees whose monthly salary exceeds Rs 6,500 and were outside the purview of the governments Employees Provident Fund schemes. Till last year, PF trusts that followed mandated investment norms were simply recognised by the income tax authorities for exemptions. 
 
The amendment now makes it compulsory for corporate PF trusts to comply with the Employees Provident and Miscellaneous Provisions Act, 1952, and to claim exemptions under Section 17 of the same Act. 
 
That means that these PFs trusts are subject to two sets of regulators the Income Tax Commissioner and the Provident Fund Commissioner. 
 
It may take over a year for companies to get approval under section 17, said A S Mehta, vice-president in charge of corporate accounts at JK Industries. 
 
Though the deadline for complying with the change in the Act was March 31, 2007, few companies have done so because they expect some clarification in Budget 2007-08. 
 
The Federation of Indian Chambers of Commerce and Industry has already made several representations to the finance ministry to scrap the amendment or exempt existing PF trusts from its purview.

Prashant K Sahu

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions