Is separate PAN required for LIC Gratuity Scheme?

Greetings from Satvik : Promoting Ecological Farming. 
 
We are NGO working in Kachchh district. Recently we have opted Employee Group Gratuity Scheme of LIC. We were advised to seek approval under Part C of the Fourth Schedule of the Income Tax Act from office of the Income Tax Commissioner.
 
Office of the Income Tax Commissioner has asked us to obtain separate PAN Card (than the NGO) for EGG and file annual return as ITR – 7.
 
Since long we are in NGO field. We have observed that this is not in practice. Please suggest does it mandatory and explain your view.
 
Warm regards,
 
Nikita Gor

For,
Satvik : Promoting Ecological Farming
A-59, Changleshwar Society
Mundra Relocation Site
Bhuj – Kutch (Gujarat) 370001

This entry was posted in FCRA, TAX, LEGAL. Bookmark the permalink.

2 Responses to Is separate PAN required for LIC Gratuity Scheme?

  1. Sudhakar says:

    Yes. PAN is required. It is separate Trust called Organization ________ Employees Gratuity Fund. Once we are recognized by LIC, the organization need to execute a trust deed and that trust needs to be approved by the ITO. Once we submit the trust deed along with PAN the ITO would grant approval under Rule 4(1) Part C of the Fourth Schedule of IT Act. 1961. Each year the trust need to file ITR with audited financial statement as NGO do.
    Sudhakar

  2. Ramya Haricharan says:

    Its an existing practice/ requirement from LIC. since this is a new entity by itself we need to submit PAN no for it

Comments are closed.