TaxTMI 
TaxTMI 
TaxTMI 
Recognised Provident Funds
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....f an employee" means the total amount to the credit of his individual account in a provident fund at any time; (e) "annual accretion" in relation to the balance to the credit of an employee, means the increase to such balance in any year, arising from contributions and interest; (f) "accumulated balance due to an employee" means the balance to his credit, or such portion thereof as may be claimable by him under the regulations of the fund, on the day he ceases to be an employee of the employer maintaining the fund; (g) "regulations of a fund" means the special body of regulations governing the constitution and administration of a particular provident fund; and (h) "salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites. According and withdrawal of recognition 3. (1) The 28[93[Principal Chief Commissioner or Chief Commissioner] or 72[Principal Commissioner or Commissioner]] may accord recognition to any provident fund which, in his opinion, satisfies the conditions prescribed in rule 4 and the rules made by the Board in this behalf, and may, at any time, withdraw such recognition if, in his opinion, the....
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....e proportion of his salary for that year, and shall be deducted by the employer from the employee's salary in that proportion, at each periodical payment of such salary in that year, and credited to the employee's individual account in the fund; (c) the contributions of an employer to the individual account of an employee in any year shall not exceed the amount of the contributions of the employee in that year, and shall be credited to the employee's individual account at intervals not exceeding one year; (d) the fund shall be vested in two or more trustees or in the Official Trustee under a trust which shall not be revocable, save with the consent of all the beneficiaries; (e) the fund shall consist of contributions as above specified, received by the trustees, of accumulations thereof, and of interest credited in respect of such contributions and accumulations, and of securities purchased therewith and of any capital gains arising from the transfer of capital assets of the fund, and of no other sums; 66[(ea) the fund shall be a fund of an establishment to which the provisions of sub-section (3) of section 1 of the Employees' Provident Funds and Miscellaneo....
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....e employer. (3) Notwithstanding anything contained in clause (e) or clause (g) of rule 4,- (a) at the request made in writing by the employee who ceases to be an employee of the employer maintaining the fund, the trustees of the fund may consent to retain the whole or any part of the accumulated balance due to the employee to be drawn by him at any time on demand; (b) where the accumulated balance due to an employee who has ceased to be an employee is retained in the fund in accordance with the preceding clause, the fund may consist also of interest in respect of such accumulated balance. 22[(c) the fund may also consist of any amount transferred from the individual account of an employee in any recognised provident fund maintained by his former employer and the interest in respect thereof.] (4) Subject to any rules which the Board may make in this behalf, the 32[97[Principal Chief Commissioner or Chief Commissioner] or 76[Principal Commissioner or Commissioner]] may, in respect of any particular fund, relax the provisions of clause (c) of rule 4,- (a) so as to permit the payment of larger contributions by an employer to the individual accounts of employees whose salaries....
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....n terminated by reason of the employee's ill-health, or by the contraction or discontinuance of the employer's business or other cause beyond the control of the employee, 23[or] 24[(iii) if, on the cessation of his employment, the employee obtains employment with any other employer, to the extent the accumulated balance due and becoming payable to him is transferred to his individual account in any recognised provident fund maintained by 114[such other employer; or]. 115[(iv) if the entire balance standing to the credit of the employee is transferred to his account under a pension scheme referred to in section 80CCD and notified by the Central Government.] Explanation : Where the accumulated balance due and becoming payable to an employee participating in a recognised provident fund maintained by his employer includes any amount transferred from his individual account in any other recognised provident fund or funds maintained by his former employer or employers, then, in computing the period of continuous service for the purposes of clause (i) or clause (ii) the period or periods for which such employee rendered continuous service under his former employer or emp....
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....he Board may prescribe. (2) The account shall also show in respect of the balance to the credit of each employee the amount thereof which is to be transferred to that employee's account in the recognised provident fund, and such amount (hereinafter called his transferred balance) shall be shown as the balance to his credit in the recognised provident fund on the date on which the recognition of the fund takes effect, and sub-rule (4) of this rule and sub-rule (5) of rule 5 shall apply thereto. (3) Any portion of the balance to the credit of an employee in the existing fund which is not transferred to the recognised fund shall be excluded from the accounts of the recognised fund and shall be liable to income-tax 5[****] in accordance with the provisions of this Act, other than this Part. (4) Subject to such rules as the Board may make in this behalf, the 50[Assessing Officer] shall make a calculation of the aggregate of all sums comprised in a transferred balance which would have been liable to income-tax if this Part had been in force from the date of the institution of the fund, without regard to any tax which may have been paid on any sum, and such aggregate (if any) shall....
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....lance as represents his share in the amount so transferred to the trustees (without addition of interest, and exclusive of the employee's contributions and interest thereon) shall, if the employer has made effective arrangements to secure that tax shall be deducted at source from the amount of such share when paid to the employee, be deemed to be an expenditure by the employer within the meaning of section 37, incurred in the previous year in which the accumulated balance due to the employee is paid. Provisions relating to rules 15. (1) In addition to any power conferred by this Part, the Board may make rules- (a) prescribing the statements and other information to be submitted along with an application for recognition; (b) limiting the contributions to a recognised provident fund by employees of a company who are shareholders in the company; 15[(bb) regulating the investment or deposit of the moneys of a recognised provident fund: Provided that no rule made under this clause shall require the investment of more than fifty per cent of the moneys of such fund in Government Securities as defined in section 2 of the Public Debt Act, 1944 (18 of 1944);] (c) providing fo....
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....superannuation fund unless he has given the trustees of that fund a reasonable opportunity of being heard in the matter. Conditions for approval 3. In order that a superannuation fund may receive and retain approval, it shall satisfy the conditions set out below and any other conditions which the Board may, by rules, prescribe- (a) the fund shall be a fund established under an irrevocable trust in connection with a trade or undertaking carried on in India, and not less than ninety per cent of the employees shall be employed in India; (b) the fund shall have for its sole purpose the provision of annuities for employees in the trade or undertaking on their retirement at or after a specified age or on their becoming incapacitated prior to such retirement, or for the widows, children or dependants of persons who are or have been such employees on the death of those persons; (c) the employer in the trade or undertaking shall be a contributor to the fund; and (d) all annuities, pensions and other benefits granted from the fund shall be payable only in India. Application for approval 4. (1) An application for approval of a superannuation fund or part of a superannuation fund s....
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.... of employee to be included in return 7. Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to an approved superannuation fund, he shall include all such deductions or payments in the return which he is required to furnish under 27[****] section 206. Appeals 8. (1) An employer objecting to an order of the 41[106[Principal Chief Commissioner or Chief Commissioner] or 85[Principal Commissioner or Commissioner]] refusing to accord approval to a superannuation fund or an order withdrawing such approval may appeal, within sixty days of such order, to the Board. (2) The appeal shall be in such form and shall be verified in such manner and shall be subject to the payment of such fee as may be prescribed. Liability of trustees on cessation of approval 9. If a fund or a part of a fund for any reason ceases to be an approved superannuation fund, the trustees of the fund shall nevertheless remain liable to tax on any sum paid on account of returned contributions (including interest on contributions, if any), in so far as the sum so paid is in respect of contributions made before the fund or part of the fund ceased t....
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.... unless the context otherwise requires, "employer", "employee", "contribution" and "salary" have, in relation to gratuity funds, the meanings assigned to those expressions in rule 2 of Part A in relation to provident funds. Approval and withdrawal of approval 2. (1) The 42[107[Principal Chief Commissioner or Chief Commissioner] or 86[Principal Commissioner or Commissioner]] may accord approval to any gratuity fund which, in his opinion, complies with the requirements of rule 3 and may at any time withdraw such approval if, in his opinion, the circumstances of the fund cease to warrant the continuance of the approval. (2) The 43[108[Principal Chief Commissioner or Chief Commissioner] or 87[Principal Commissioner or Commissioner]] shall communicate in writing to the trustees of the fund the grant of approval with the date on which the approval is to take effect, and where the approval is granted subject to conditions, those conditions. (3) The 44[109[Principal Chief Commissioner or Chief Commissioner] or 88[Principal Commissioner or Commissioner]] shall communicate in writing to the trustees of the fund any withdrawal of approval with the reasons for such withdrawal, and the date....
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....tions to the 58[Assessing Officer] mentioned in sub-rule (1), and in default of such communication, any approval given shall, unless the 47[112[Principal Chief Commissioner or Chief Commissioner] or 91[Principal Commissioner or Commissioner]] otherwise orders, be deemed to have been withdrawn from the date on which the alteration took effect. Gratuity deemed to be salary 5. Where any gratuity is paid to an employee during his lifetime, the gratuity shall be treated as salary paid to the employee for the purposes of this Act. Liability of trustees on cessation of approval 6. If a gratuity fund for any reason ceases to be an approved gratuity fund, the trustees of the fund shall nevertheless remain liable to tax on any gratuity paid to any employee. Contributions by employer, when deemed to be income of employer 7. Where any contributions by an employer (including the interest thereon, if any) are repaid to the employer, the amount so repaid shall be deemed for the purposes of income-tax 13[****] to be the income of the employer of the previous year in which they are so repaid. Appeals 8. (1) An employer objecting to an order of the 48[113[Principal Chief Commissioner or Chie....
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....utions 7. An employee participating in a recognised provident fund shall be entitled to a deduction from the amount of income-tax on his total income with which he is chargeable for any assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on his own contributions to his individual account in the fund in the previous year, in so far as the aggregate of such contributions does not exceed one-fifth of his salary in that previous year or eight thousand rupees, whichever is less." 3. Substituted vide Section 66 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, "income-tax and super-tax" 4. Substituted vide Section 66 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, "income-tax and super-tax" 5. Omitted vide Section 66 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, "and super-tax" 6. Substituted vide Section 66 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, "income-tax and super-tax" 7. Omitted vide Section 66 of the Finance Act, 1965 w.e.f. 01-04-1965 before it was read as, "and super-tax" 8.&n....
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....4 w.e.f. 01-04-1975 25. Omitted vide Section 34 of the Finance (No. 2) Act, 1980 w.e.f. 01-04-1981 before it was read as, "exceeds one-third of the salary of the employee or" 26. Substituted vide Section 74 of the Finance Act, 1987 w.e.f. 01-06-1987 before it was read as, "206(2)" 27. Omitted vide Section 74 of the Finance Act, 1987 w.e.f. 01-06-1987 before it was read as, "sub-section (1) of" 28. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Commissioner" 29. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Commissioner" 30. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Commissioner" 31. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Commissioner" 32. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before....
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....sp;w.e.f. 01-04-1988 before it was read as, "Commissioner" 49. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax Officer" 50. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax Officer" 51. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax Officer" 52. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax Officer" 53. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax Officer" 54. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax Officer" 55. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax Officer" 56. Substituted vide....
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...., 2012]" 71. Substituted vide Section 60 of the Finance Act 2013 w.e.f. 01-04-2013 before it was read as, "31st day of March, 2013" 72. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 73. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 74. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 75. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 76. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 77. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 78. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Commissioner" 79. Substituted vide Section 4 of the Finance (No. 2) Act,....
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....014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 97. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 98. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 99. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 100. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 101. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 102. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 103. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, "Chief Commissioner" 104. Substituted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 ....