Panel to meet on Friday over tax exemption to PF trusts

In a bid to protect tax benefits for subscribers of about 180 private provident fund trusts, retirement fund body Employees' Provident Fund Organisation (EPFO) has called a meeting of an empowered committee on Friday to grant them regular tax exemption.

The meeting has been called as the Finance Minister P. Chidambaram did not extend a March 31 deadline for the trusts to get regular tax exemption through the Employees' Provident Fund Organisation (EPFO).

Mr Chidambaram made it mandatory in 2006 for these trusts to procure an exemption certificate by March 31, 2007, a deadline that has been extended and is now set to expire on March 31.

"We have called the first meeting of an empowered committee, for granting regular tax exemption to private PF trusts," EPFO Central PF Commissioner K K Jalan told PTI.

Regular tax exemption is granted by the EPFO's apex decision-making body, the Central Board of Trustees, headed by the Labour Minister.

According to a senior official, there are around 180 such applications, which are being processed by the EPFO at present.

The official expressed the hope that 40-50 such cases which have fulfilled all requirements for the purpose can get regular tax exemption in the Friday meeting of the committee headed by the Central Provident Fund Commissioner.

Private PF trusts are formed by firms that manage the money and accounts of their workers themselves and have exemption from filing PF returns. The members of these trusts enjoy income tax and other benefits at par with EPFO subscribers.