Separate rules and regulations for women self-help groups regarding PAN and tax status
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There are many women self help groups are functioning without any registration. A significant proportion of them save and rotate own funds, as an individual SHG and or by a federation of SHGs for their family uplift and improve standard of living. At present banks insist PAN for such SHGs, which is not possible as the SHGs are an unregistered organization. This deprives the SHGs to transact with the banks even with their own funds. Banks are also not accepting the PAN of the key representatives of SHGs as an alternative. Even if they accept it, it is not clear about the tax-ability of such authorized representatives. As a democratic organization, SHGs rotate the key persons once in a year. Hence it throws further challenges. The formation of women credit co-operatives are also nearly impossible in States like TamilNadu. Hence, on behalf of the SHGs we request the Honorable Finance Minister to and the RBI to issue separate guidelines regarding the PAN requisition so that these organizations can apply for PAN and streamline the savings and credit functions with their own funds. Kindly note that it is not possible for all the federations of SHGs to convert themselves in to NBFCs. We firmly believe in the local solutions and pray for the remedies from the Honorable Finance Minister and RBI.
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