Approval of gratuity funds: transferability of equitable interest on voluntary exit should not bar statutory approval where fund compliance exists.

Approval to a gratuity fund should not be refused solely because it permits transfer of an employee's equitable interest to another approved gratuity fund when the employee leaves service voluntarily before the specified retirement age; if the fund otherwise complies with Part C of the Fourth Schedule to the Income-tax Act and the relevant Income-tax Rules, approval should be granted.

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