Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARDS :: cpt :: articles on VAT and GST in India
 
 
« News Headlines »
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules
 Ten facts to know about filing income tax return this year
 The Ten Commandments of Tax Filing
 How to claim income tax refund
 How to time your buys to have best of two tax regimes
 Here's why you must always check Form 26AS before filing tax return
 Want to file your income tax return after June 30? Having Aadhaar card is a must
 Timeline for filing of tax returns extended by two months

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 2017 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