Uncertainty over tax relief to PF Trusts

The Finance Act 2007 amended Rule 4(ea) of Part A of Sch. IV to the ITA
whereby esttb. maintaining own private PF Trust was required to obtain
exemption u/s 17 of the PF Act. The deadline was amended twice and has
expired on 31/3/2009. There is no word on PF in the Interim Budget. More
than 1500 recognized PF Trust (as per article published in news paper )
are in risk of loosing recognition if they do not get exemption
certificate from MOL. Due to extreme slowness on the part of MOL and
also so much formalities need to be complied with including getting PF
Code number from PF authorities for seeking exemption u/s 17 of the PF
Act many PF trust (those who have applied for) have not yet got
exemption from EPFO or many esttbs. Fails to even apply for seeking
exemption for want of PF Code No.

From practical point of (duel compliance one for PF authorities & other
for IT deptt.) the Rule 4 (ea) should be Scraped (in consultation with
MOL) immediately since it would ultimately encourage "INSPECTOR RAJ"
which is not at all desirable/acceptable.

The Respectable Finance Minister, Please do something so as to reduce
the administrative burden of the Trustees of recognized private PF Trust
which is directly under the jurisdiction of the concerned CIT.
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Best wishes and kind regards,
Anuj Thakur
Manager (Trusts & Funds)
Watson Wyatt Worldwide
Merlin Link /166B, S P Mukherjee Road / Kolkata 700 026/ India
Phone: 91 33 66336020 | Fax: 91 33 66336001 | Cell: 91 9830909940
anuj.thakur@watsonwyatt.com
www.watsonwyatt.com

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