From: prenjen@hotmail.com
To: militaryveterans@yahoogroups.com; indianveterans@yahoogroups.com; quarter_centurians@yahoogroups.co.uk; wegunners@yahoogroups.com; coregpiesm@yahoogroups.com
Subject: IESM ACCOUNTS
Date: Tue, 10 Nov 2009 08:11:41 +0000
Dear IESM Members and other Veteran Friends,
IESM accounts for the FY 2008-09 have been audited as per regulations by a CA and the Income Tax Return has been accordingly filed. The accounts - balance sheet etc - will be presented to the members at the forthcoming AGM. Once approved, these will be put up on the web site for information of all members.
Some relevant rules on expenditure, as per Govt regulations on the subject,
are; -
1. Receipts against "Life Membership Fee" are to be put aside in a "Corpus" Fund and cannot be used for routine expenses. The purpose of the Corpus is to provide strength to the Organisation. However, we IESM may use any interest earned on the Corpus investments like Fixed deposits etc. This restriction is not applicable for annual subscriptions, which may be spent at will. IESM does not collect any annual subscriptions nor is there any proposal to do so in future.
2. Receipts against Donations can be spent for entitled expenses even though, in the first instance, 15% of these receipts are also required to be deposited in the "Corpus" and only 85% may be spent. If inescapable, however, this 15% can also be used for expenses. The unspent balance of the Donations is treated as income and taxed unless the Organisation obtains exemption from the requirement of spending it all within the year from the IT Deptt under sec 12A; the exemption allows that the receipts from donations may be spent in 5 yrs instead. Unspent amount thereafter will however be taxed. As already informed to all, IESM has obtained the required exemption.
3. While receipts from donations were generally satisfactory during the last financial year (FY 2008-09), these have virtually dried up in the current financial year. As a result, expenses till date exceed receipts for the year (FY 2009-10) and IESM is required to dip in to last year's balances of donations. This cannot go on; all members of IESM have to increase efforts to mobilise donations from ESM and civilians including Corporates. Convenors at all levels also need to keep this in mind when planning expenses, which they expect to be reimbursed by the HQ IESM. However, it must be added that IESM shall reimburse all justified and inescapable expenses. It is also worth noting that from 01 April, 2009 all donations received by IESM are eligible for IT exemption under sec 80G. Required receipt to claim the exemption will be issued by IESM.
God Bless IESM and God bless you,
Maj Gen (Retd) PK Renjen, AVSM
91-9810044542 (cell),
0124-6523963 (home)
