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Discussion > Income Tax >

How to form "employee welfare trust"?

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CA

[ Scorecard : 708]
Posted On 31 March 2012 at 15:28 Report Abuse

To all professionals.

One of the assessee company wants to form a trust for providing medical incentivesto its employees and Sec 40(a)(iv) reads as under :

" any payment to a provident or other fund established for the benefit of employees of the assessee, unless the assessee has made effective arrangements to secure that tax shall be deducted at source from any payments made from the fund which are chargeable to tax under the head “Salaries”"

My query is regarding how to form this trust?

 

 



Sonam Bidasaria
CA

[ Scorecard : 708]
Posted On 03 April 2012 at 18:20

Hello friends.

I have got the answer, that such welfare funds has to be made under Rule 16C read with Sec 10(23AAA). 

Now, my question is, whether anyone can provide me the format of trust deed for such employee welfare fund.?



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