Question : IT WELFARE FUND

(a) Whether Income Tax welfare fund for the welfare of employees of the department has started functioning;

(b) If so, the details thereof;

(c) If not, the reasons therefore and the time for functioning of the same;

(d) whether incentive fund under Fiscal Responsibility and Budget Management (FRBM) Act awarded to Income Tax Department in the financial year 2007-08 has been credited to the fund; and

(e) If so, the details thereof and if not, the manner in which the incentive fund will be utilized?

MINISTER OF STATE IN THE MINISTRY OF FINANCE(S.S.PALANIMANICKAM)

(a) No, Sir

(b) Not applicable.

(c) The Fund has not yet become functional due to objections raised by the Comptroller & Auditor General of India against creation of the Fund and on various other grounds. Efforts are on to settle the objections through negotiation.

(d) No, Sir.The incentive fund is separate from the Welfare Fund

(e) An amount of Rs. 469 crores, being 1% incentive of the additional revenue collected during Financial Year 2007-08, has already been approved by the Government.Specific details of various schemes to utilize the amount are being prepared by the Central Board of Direct Taxes for further consideration and approval.