In this scripture there are two fictional characters, Avinash who is recently qualified CA who and pursuing job after obtaining membership of ICAI and the second character is Mohit who is a practicing CA.
Due to lack of awareness of welfare kind of activities of ICAI through funds etc., Avinash thinks that no effort is made by ICAI for the protection of the members or their family members if any adverse happening to the member. Mohit tries to clarify the scenario and tries to convey the true information about the certain efforts made by ICAI in this regard. It may not assure sufficient support towards such eligible members but it may help to an extent possible.
For better understanding the entire conversation is reproduced herewith.
Avinash: – Hey Mohit, as you know that I have been enrolled as a member of our beloved institute recently and joined a good job with handsome package. Everything at this stage seems to be good but I feel that in case of any adverse happening, no kind of support is given by our institute in the interest of the family members of its members and dependents are also left unprotected. I think ICAI should set up a fund of this kind to protect the family members of its members in case of these situations.
Mohit: – It is a valuable suggestion my friend but don’t you have any information about the Chartered Accountants Benevolent Fund (CABF) fund managed by our institute?
Avinash: – Oh really, is there any fund set up by our institute in this regard? Please elaborate the functions and some more information about it.
Mohit: – Okay, let me tell you in detail. The name of this fund is The CHARTERED ACCOUNTANTS BENEVOLENT FUND (CABF) and the office of the same is situated in New Delhi at the office of ICAI itself.
Avinash: – Oh wow, our institute itself is doing a wonderful activity then, I was unaware about it. Can you please tell me that how it was set up and how it works, controlled and monitored?
Mohit: – Listen, this fund was established in the year 1962 and it was registered under the Societies Registration Act 1860 in the name of “Chartered Accountants Benevolent Fund” by the members of the Institute and for the members of the Institute.
It is governed by a separate management committee of ICAI which consists minimum 5 and maximum 7 members. Members of this committee include the president & vice-president as ex-officio, chairman and vice-chairman, others selected from members at AGM, co-opted member till next AGM.
Avinash: – Oh that’s really great, it means that it is managed in a very good manner with proper internal control. Now, tell me that who can contribute to this fund and to what extent. I mean any member who is in job, whether he can also do the same?
Mohit: – Yeah, it’s a very good and relevant question. Let me tell you that any member of ICAI who has enrolled himself as a member of this fund can contribute to this fund. For becoming an enrolled member of this fund, the member of ICAI needs to submit a prescribed form duly filled and signed in prescribed manner to the regional council of ICAI and he needs to deposit a prescribed fees as subscription fees along with this form. After doing these formalities, he becomes eligible to enrol himself as a member of this fund. Once he becomes an enrolled member of this fund, then he can contribute to this fund voluntarily and yes, irrespective of his occupation being in job or in practice, he may voluntarily apply for the enrolment as member to this fund with his sole discretion.
Avinash: – That’s truly great Mohit, but I do have some more questions in my mind, can you please guide me with them? Like how many types of memberships are given in this fund and how much fees I need to deposit as subscription fees along with such application.
Mohit: – Yeah my friend, I will clarify you with all the related information so that you can get the detailed knowledge of the same.
See that any member of ICAI may obtain the membership to this fund in two manner i.e. either as Life Member of the fund or as Ordinary Member of the fund. Separate forms for Life and Ordinary membership in prescribed forms need to be submitted to the regional council of the ICAI after duly filling and signing by the member. Please note that a single person cannot become both life as well as ordinary member at a same time.
Please also note that, to obtain the Life membership of this fund, the member need to pay Rs. 5000/- (once in life time) as subscription fees and he shall become eligible to become a life member of the fund. Thereafter he would not be liable to pay any amount for the purpose of subscription/ enrollment for the entire life and he would be styled as a Life Member of the fund.
However, to become ordinary member of the fund, payment which has to be done is Rs. 1000/- and this payment is required to be done every year and it will become due on the first day of April every year. After that he would be styled as ordinary member of the fund.
Avinash: – That’s really appreciable. Please also tell me that how much amount any member has to be deposit to this fund every year.
Mohit: – No, there is no compulsion on any member to give any contribution to this fund after their enrollment also, it is fully and solely on the discretion of the member of the fund and there is no maximum limit of the amount which one may contribute but there is a minimum limit that if anyone is contributing any amount then in any case such amount shall not be lessor than Rs. 20/-. It means any enrolled member of the fund can contribute to this fund on voluntary basis whatsoever the amount which he thinks fit but in any case the amount shall not be lesser than Rs. 20/-.
Avinash: – It’s really awesome that there is no compulsion to contribute to this fund but please tell me that if I am donating to this fund then is this fund registered with income tax act also and if yes, then is there any PAN number to the fund available? Am I also eligible to claim exemptions/ deductions u/s 80G of the act if I donate something?
Mohit: – The permanent account number (PAN) of the fund is AAAAC0065G and this fund is also entitled to issue receipts of the contributions made by the members. All subscription and contribution made towards CABF is eligible for deduction under section 80(G) of Income Tax Act 1961.
Avinash: – Ok I am convinced, I am very excited to be a member of this fund, now please tell me the way by which I can deposit the same to this fund.
Mohit: – It’s as simple as depositing your membership fees, it means that payment of the aforesaid sums can be done through SSP portal of ICAI by logging in to the member section and it can also be paid along with the membership fees for the year. Alternatively it can also be paid separately by logging into SSP member section.
This is to note that the above mentioned contributions which the members are doing are subscription/enrolment fees and not the contribution.
Contribution is different and I have already elaborated the same in your above query.
Avinash: – Mohit, I have decided to become as life member of this fund of ICAI and to contribute to this fund on regular basis. Now please also tell me that what the objective of this fund is. I mean who are the eligible person who can become beneficiaries in this fund?
Mohit: – That’s really great Avinash, I am also a life member of this fund. The objective for which the fund is established is to provide financial assistance for maintenance, education or any other similar purpose to necessitous persons being:-
a. Persons who are or have been members of the Institute, whether subscribers of the fund or not; or
b. Wives and children of persons who are or have been members of the Institute, whether subscribers of the fund or not.
c. Widows and children of deceased persons who have been members of the Institute whether subscribers of the fund or not.
d. Relatives or others who were dependent for support on a person who has been a member of the Institute, whether subscriber of the fund or not; and who has died without leaving a widow or child.
Avinash: – Oh this is really excellent. Mohit, I have taken much time on this and I have been enriched and enlightened with this vast knowledge about this fund. Can I also know that how many members have been enrolled themselves in this fund as a Life member and how much assistance has been provided out of this fund by our institute?
Mohit: – See Avinash, statistics of this fund are always published in the annual report of ICAI every year along with other financial records.
As per the latest published annual report of our institute i.e. ICAI Annual Report for the Financial Year ended on 31st March 2019, statistics of the members and assistance provided is as under:-
Total Life Members as on 31st March, 2018 1,34,596
Total Life Members as on 31st March, 2019 1,36,137
Total Additions of New Life Members (as on 31st March, 2019) 1,541
Details of Financial Particulars During the year ended 31st March, 2019 (Rs.) During the year ended 31st March, 2018 (Rs.)
1. Total Assistance provided 1,12,70,000 92,10,500
2. Administrative Expenses 2,014 1,000
3. Surplus of the Fund during the year 1,24,95,000 2,04,80,000
4. Balance of the Fund 4,93,29,000 3,68,34,000
5. Balance of Corpus 20,63,28,000 9,86,23,000
Avinash: – Okay, I have understood the level of transparency and the statistics of this fund to a reasonable extent. Do you have any understanding about the procedure that how the assistances are given out of this fund to the eligible members or family members and what is the maximum limit of this assistance available and what are the types of this assistance given out of this fund?
Mohit: – There are 3 kind of financial assistance given under this fund-
If any adverse happening occurs then an application in prescribed form has to be submitted to ICAI. Application for financial assistance has to be made in prescribed format along with all relevant supporting documents mentioned therein. This application has to be recommended by any Central Council Member or Chairman/Vice Chairman/Secretary of any Regional Council or Branch/ Ex-President/Chairman/Vice-Chairman and Member Secretary/Member of Managing Committee of CABF /Member of Managing Committee of Regional Council.
Avinash: – Oh wow, it is following a good internal control system over the functioning over the same. Please also tell me that what is the maximum amount assistance available out of this fund?
Mohit: – Hmm, the maximum monthly assistance available to a member or persons eligible to receive the assistance is from Rs.4500/- to Rs.7500/- per month according to the circumstances of the use renewable after one year. This is for maintenance of family of members/widow/relatives of deceased members.
Financial assistance will be given only to the members/widows/relatives whose monthly family income is not more than Rs. 15000/- pm.
Ex-gratia financial assistance of Rs.150000/- is provided to the legal heir of deceased member in case of accidental death/ unnatural death at the age below 55 years against claim.
Avinash: – Fabulous Mohit, I have understood the same in a very good manner. Thank you so much for enlightening my mind with this knowledge. Is there any other funds available setup under ICAI for this noble cause?
Mohit: – It’s my pleasure dear brother… Let me tell you about S. VAIDYANATH AIYAR MEMORIAL FUND also. There is also a separate fund for this welfare and noble cause and the balance in the credit of the Fund was Rs. 52,97,000 as on 31st March, 2019 as against Rs.47,97,000/- as on 31st March, 2018.
Avinash: – So this is how our institute is standing with its members and their family members in the situations of any adverse happening. Mohit, is there any find setup for the welfare of our students also?
Mohit: – Yes my dear friend, our institute is not only thinks for the welfare of the members but also keeps its students in its mind.
For this noble cause, there is a separate Chartered Accountants Student’s Benevolent Fund (CASBF) has been setup by our institute.
The Fund was established in the month of August, 2008 with the objective to provide financial assistance to the students registered with the institute.
According to the extract given in the annual report of ICAI for the year ended on 31st March 2019, the scholarships for the year 2018-2019, 1073 articled assistants who are registered for IPCC and IIPCC have been granted assistance @ Rs. 1500 p.m. and 256 articled assistants who are registered for final course granted financial assistance @ Rs. 2000/- p.m. The balance in the credit of the general fund was Rs. 14,31,53,000/- as on 31st March, 2019 as against Rs. 13,91,82,000/- as on 31st March, 2018.
Avinash: – Thank you so much for the golden information which you have shared with me. This information should be circulated so that awareness can be there to the members and their family members so that they can take the benefit of these plans in case of any adverse happenings.