Format of Resolution for Reasonable Remuneration to Interested Persons – Section 13 – Income Tax Act

Reasonable Remuneration to Interested Persons under Section 13 of The Income Tax Act 1961 Permitted-Resolution Format

RESOLUTION OF GOVERNING BODY OF ………………………………… HELD ON…………..AT………………………….

The Governing body have carefully considered the matter of reasonable compensation of the members towards their skill, knowledge and cost for their regularly attending the only college unit of…………………………..………………..at …………………………….for day to day activities / services towards the charitable object of the society. 

Background:

The educational institute  namely…………………………established in the year ……………….with the approval of AICTE ( All India Council for Technical Education), Govt. of India and affiliated to WBSCTE (West Bengal State Council for Technical Education ) , Govt. of west Bengal and evidenced a substantial growth in respect of academic activities and spread of education.

The institute is now having ………..students and……………staffs and a large campus with various courses and streams. During recent years a large number of recruitments have also been made in various departments and offices.

The institute being an unaided institute also got limitations in recruitment and some of the members are also having due qualification and reasonable expertise in the field of engineering and administration and are regularly rendering services to the instate. Now this Governing Body proposes reasonable compensation to the serving members only as follows:

The members are rendering services in various fields and subjects as follows :

(a) Recruitment of teachers.

(b) Admission policies and fees structure for the Institute.

(c) Academic and study profile of the Institute.

(d) Co-ordination with AICTE and other government bodies.

(e) Renewal of approval and affiliation of institute with AICTE and other government bodies.

(f) Training and guidance to teaching staff for improvement of overall education of students.

(g) Over all administration of the running of Institute.

(h) Co-ordination with State Government Educational and other authorities.

(i) Management of construction and infrastructure facilities of the Institute.

(j) Being unaided educational institute to arrange and/or Management of funds from bank for building constructions and other needs.

(k) Laboratory and workshop set up

Experience:-

(a) …. years’ experience of engineering, management and administration.

(b) Duly qualified in the field of technical education.

The members who are only rendering services as above are attending the institute regularly and on daily basis in the morning and evening and apart from the above the members are also entrusted with the following duties by the Govt.

a……………………………….

b……………………………….

Issues for consideration:

The following issues are to be considered by this Governing Body:

1. Reasonable Remuneration / compensation payment to the members of…………..by ……………….for their regular services and cost and forwarding of proposal to Governing Body of the ……………………(Institute) for their approval subject to the followings :

a. Reasonable remuneration to be paid in commensurate with the services of the members on regular basis.

b. Day to day administration / management of the institute will also be covered under the services of the members.

c. Being an unaided institute it is to be emphasised that payment of remuneration / compensation should be cost effectiveness i.e. comparative analysis to be made before payment.

d. The remuneration may vary with the volume of work load and duties.

e. The member’s specific professional services and skills are only to be considered for the payment.

f. That apart from the reasonable compensation no other benefits and / or value will be provided in any manner.

2. If the Governing body of the Institute takes decision on the above will send a confirmatory note along with the copy of the engagement letters to this GB and will observe the terms and conditions of the sanction.

The Treasurer Sri ………………………… will forward the formal proposal to the Governing Body of  …………………for necessary action and formalities.