Income Tax Act, 2025
Section 2: Subs. by Act 10 of 1965, s. 66, for “income-tax and super-tax” (w.e.f. 11965).
2. Subs. by Act 10 of 1965, s. 66, for “income-tax and super-tax” (w.e.f. 11965).
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PART B
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APPROVED SUPERANNUATION FUNDS
[See sections 2(6), 10(13), 10(25) (iii), 36(1)(iv), 87(1)(e), 192(5), 1[206]]
1. Definitions.—In this Part, unless the context otherwise requires, “employer”, “employee”,
“contribution” and “salary” have, in relation to superannuation funds, the meanings assigned to those
expressions in rule 2 of Part A in relation to provident funds.
2. Approval and withdrawal of approval.—(1) The 2[3[Principal Chief Commissioner or Chief
Commissioner] or 4[Principal Commissioner or Commissioner]] may accord approval to any
superannuation fund or any part of a superannuation 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 or part cease to warrant the continuance of the approval.
(2) The 2[3[Principal Chief Commissioner or Chief Commissioner] or 4[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 2[3[Principal Chief Commissioner or Chief Commissioner or 4[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 on which the withdrawal is to take effect.
(4) The 2[3[Principal Chief Commissioner or Chief Commissioner or 4[Principal Commissioner or
Commissioner]] shall neither refuse nor withdraw approval to any superannuation fund or any part of a
superannuation fund unless he has given the trustees of that fund a reasonable opportunity of being heard
in the matter.
3. Conditions for approval.— 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.
(iii), 36
The 2[3[Principal Chief Commissioner or Chief
Commissioner] or 4[Principal Commissioner or Commissioner]] may accord approval to any
superannuation fund or any part of a superannuation 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 or part cease to warrant the continuance of the approval.
The 2[3[Principal Chief Commissioner or Chief Commissioner] or 4[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.
The 2[3[Principal Chief Commissioner or Chief Commissioner or 4[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 on which the withdrawal is to take effect.
The 2[3[Principal Chief Commissioner or Chief Commissioner or 4[Principal Commissioner or
Commissioner]] shall neither refuse nor withdraw approval to any superannuation fund or any part of a
superannuation fund unless he has given the trustees of that fund a reasonable opportunity of being heard
in the matter.
3. Conditions for approval.— 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—
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;
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 ;
the employer in the trade or undertaking shall be a contributor to the fund ; and
all annuities, pensions and other benefits granted from the fund shall be payable only in India.