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LATEST NEWS UPDATES | PM relief fund faces risk of losing PAN

PM relief fund faces risk of losing PAN

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published Published on Sep 3, 2013   modified Modified on Sep 3, 2013
-The Times of India


NEW DELHI: The Prime Minister's Office held an urgent meeting with income tax department officials on Monday to discuss the fallout of the PM's National Relief Fund facing de-recognition of its Permanent Account Number (PAN).

Having received objections from some quarters that the PM's relief fund is a private body and not a government entity, the PAN obtained for receiving donations faces de-recognition as it was obtained in the capacity of government and not as a private body, sources said.

The PMO has asked the I-T department to clarify if the same PAN can be used by its donors to obtain I-T exemption or a fresh PAN needs to be issued, thus recognizing the fact that the relief fund is a non-government entity. As per procedure, individuals contributing to the relief fund have to mention the PAN number of the receiving agency in their returns to claim I-T exemption on donated amount.

In case of donations made to government entities, there is no such requirement.

Like other non-government organizations or private trusts, any contribution to the PM's relief fund is exempted from income tax under Section 80 (g) of the I-T Act.

The issue has assumed urgency because in case the PAN is de-recognized, all those who have contributed to the fund will not be able to get I-T exemption like in case of donations to other NGOs unless a new PAN is obtained. A high-level deliberation was underway in the I-T department to immediately rectify the 'mistake'.

According to the PMO, contributions and other income of the relief fund are around Rs 200 crore a year, while its annual expenditure is around Rs 180 crore. The surplus is invested in bank fixed deposits, the corpus of which has gone over Rs 1,700 crore in 2012-13.

Donations received in the PM's relief fund are primarily used for extending relief to families of those killed in natural calamities and to the victims of terror attacks, accidents and riots. Financial assistance is also provided out of the fund to those who can't afford medical treatment for serious ailments.

The PM's relief fund is audited by an independent firm outside the government, Thakur Vaidyanath Aiyar & Co. The fund is "administered on an honorary basis by a joint secretary to the PM as secretary of the fund" and he is assisted on honorary basis by an officer of the rank of director.

The fund, which is kept in a common pool, accepts only voluntary contributions by individuals and institutions. Contributions flowing out of budgetary sources or from the balance sheets of the public sector undertakings are not accepted.


The Times of India, 3 September, 2013, http://timesofindia.indiatimes.com/india/PM-relief-fund-faces-risk-of-losing-PAN/articleshow/22243634.cms


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