Hi Friends, we have to implement a "Benevolent Fund" in our organization. Basically, a Trust is to be formed, and the exemption from the Commissioner of Income Tax has to be sought. Thereupon, the accounting part is also to be managed/handled. Does anyone have information on how to proceed with this? Even any consultant who is an expert in this area can also help.
Warm Regards,
Datta P. S.
From India, Mumbai
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Warm Regards,
Datta P. S.
From India, Mumbai
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Benevolent Fund:
Objective:
To safeguard our employee's family after he or she passes away.
Process:
Every employee will contribute a minimum of ₹10 or more monthly, and management will also make an equal contribution. Upon the death of an employee, an amount of ₹1,00,000 or more, as fixed by the committee, would be paid from the fund to the nominee of the deceased employee within 30 days of the employee's death.
Scope:
It covers all employees except those covered under the life security plan or top management.
Applicability:
Applicable to all natural and accidental deaths except suicide.
Source of Funds:
Contributions would be directly deducted from the salary and remitted to the ABC Ltd. Employees' Benevolent Fund Scheme or trust.
Validity + Grace Period:
If no such circumstance occurs to our employee within one year, the collected fund is used for "Employee Recreation" activities or as decided by the panel members.
Panel Decision:
A committee is appointed to certify the death of an employee.
IT exemption can be obtained under Section 80G by getting approval for exemption from the Commissioner of Income Tax for the trust or Benevolent Fund Scheme.
From India, Mumbai
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193Objective:
To safeguard our employee's family after he or she passes away.
Process:
Every employee will contribute a minimum of ₹10 or more monthly, and management will also make an equal contribution. Upon the death of an employee, an amount of ₹1,00,000 or more, as fixed by the committee, would be paid from the fund to the nominee of the deceased employee within 30 days of the employee's death.
Scope:
It covers all employees except those covered under the life security plan or top management.
Applicability:
Applicable to all natural and accidental deaths except suicide.
Source of Funds:
Contributions would be directly deducted from the salary and remitted to the ABC Ltd. Employees' Benevolent Fund Scheme or trust.
Validity + Grace Period:
If no such circumstance occurs to our employee within one year, the collected fund is used for "Employee Recreation" activities or as decided by the panel members.
Panel Decision:
A committee is appointed to certify the death of an employee.
IT exemption can be obtained under Section 80G by getting approval for exemption from the Commissioner of Income Tax for the trust or Benevolent Fund Scheme.
From India, Mumbai
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It is a continuous process; hence, the accumulated fund will be under fixed deposit with the nationalized bank. Whenever there is a requirement, it will be withdrawn and paid to the beneficiary.
Additionally, if any employee who contributes to the benevolent fund resigns in between, then the amount contributed till the date by him will be paid along with the final settlement amount.
Regards,
Kamesh
From India, Hyderabad
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Additionally, if any employee who contributes to the benevolent fund resigns in between, then the amount contributed till the date by him will be paid along with the final settlement amount.
Regards,
Kamesh
From India, Hyderabad
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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