Budget 2013 gives one more year to Provident Fund trusts to seek income tax exemption
"With a view to provide further time to the EPFO to decide on the pending applications seeking exemption under section 17 of the Employees Provident Fund & Miscellaneous Provision Act, it is proposed to amend the first proviso, so as to extend the time limit from 31st March, 2013 to 31st March, 2014", said the memorandum explaining the provision of Finance Bill 2013.
"It has been noticed that a number of applications are yet to be processed by the Employees' Provident Fund Organization (EPFO) for grant of exemption under section 17 of EPF & MP Act. This amendment will take effect retrospectively from 1st April, 2013", it said.
In 2006, Finance Minister P Chidambaram who was at helm of affairs, had made it mandatory for all private PF Trusts (PPFT) to seek exemption certificates either from the Labour Ministry or state Labour Department within a year for enjoying the tax benefits.
Since all these trusts could not get the exemption certificates in that year, annual waiver was being given by successive budgets, on request from the Labour Ministry.
The firms operating in one state are required to seek exemption from that state's Labour Department and the entities having operations in more than one state are required to get the certificate from the Union Labour
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