By IANS
New Delhi : The government plans to "encourage transfer of shares and stock options to Voluntary Organisations (VOs)," Planning Commission Deputy Chairman Montek Singh Alhuwalia announced here Thursday.
Alhuwalia, accompanied by the other members of the Planning Commission, released a 12-page `National Policy on the Voluntary Sector, 2007' to the media at the Commission headquarters here.
The union cabinet had approved the new policy on May 17.
Elaborating the stock options aspect of the policy, the document stated, "Public donation is an important source of funds for the voluntary sector and one that can and must increase substantially. Tax incentives play a positive role in this process.
"Stocks and shares have become a significant form of wealth in the country today. In order to encourage transfer of shares and stock options to VOs, the government will consider suitable tax rebates for this form of donation. The Government will simplify and streamline the system for granting income tax exemption status to charitable projects under the Income tax Act," said the document.
In effect the 'national policy on the Voluntary sector, 2007' seeks to unbridle non-governmental organisations (NGOs) or the voluntary sector of any government checks and restrictions.
Unveiling the government policy, Ahluwalia said "this policy is a commitment to encourage, enable and empower an independent, creative and effective voluntary sector, with diversity in form and function, so that it can contribute to the social, cultural and economic advancement of the people of India".
The policy considers any organisation as a voluntary organisation (VO) if it is "engaged in public service, based on ethical, cultural, social, economic, political, religious, spiritual, philanthropic, or scientific and technological considerations".
The document stated that to qualify as a VO an organisation need only be private that is totally separate from Government; does not return profits generated to its owners or directors, be self-governing and should be registered organisations or informal group with defined aims and objectives.
Asked about the bona fides of the VOs Ahluwalia said, "It is for the donor, be it the government or a private donor to verify or establish the bona fides of any VO they are interacting with."