Assignment of provident fund interest triggers notice and two-month cancellation window; consideration is treated as income when discovered. If an employee assigns or creates a charge on their beneficial interest in a recognised provident fund, the Assessing Officer must notify the employee and give a two-month period to cancel; if not cancelled, the consideration received is deemed to be income of the employee in the tax year when the Assessing Officer became aware and shall be assessed accordingly.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Assignment of provident fund interest triggers notice and two-month cancellation window; consideration is treated as income when discovered.
If an employee assigns or creates a charge on their beneficial interest in a recognised provident fund, the Assessing Officer must notify the employee and give a two-month period to cancel; if not cancelled, the consideration received is deemed to be income of the employee in the tax year when the Assessing Officer became aware and shall be assessed accordingly.
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