Income Tax Act, 2025
Section 9: Tax on accumulated balance.—(1) Where the accumulated balance due to an employee
9. Tax on accumulated balance.—(1) Where the accumulated balance due to an employee
participating in a recognised provident fund is included in his total income owing to the provisions of
rule 8 not being applicable, the 4[Assessing Officer] shall calculate the total of the various sums of
5[tax] which would have been payable by the employee in respect of his total income for each of the
years concerned if the fund had not been a recognised provident fund, and the amount by which such
total exceeds the total of all sums paid by or on behalf of such employee by way of 5[tax] for such
years shall be payable by the employee in addition to any other 5[tax] for which he may be liable for
the previous year in which the accumulated balance due to him becomes payable.
(2) Where the accumulated balance due to an employee participating in a recognised provident fund
which is not included in his total income under the provisions of rule 8 becomes payable, an amount equal
to the aggregate of the amounts of super-tax on annual accretions that would have been payable under
section 58E of the Indian Income-tax Act, 1922 (11 of 1922), for any assessment year up to and including
the assessment year 1932-33, if the Indian Income-tax (Second Amendment) Act, 1933 (18 of 1933), had
come into force on the 15th day of March, 1930, shall be payable by the employee in addition to any
other tax payable by him for the previous year in which such balance becomes payable.
10. Deduction at source of tax payable on accumulated balance.—The trustees of a recognised
provident fund, or any person authorised by the regulations of the fund to make payment of accumulated
balances due to employees, shall, in cases where sub-rule (1) of rule 9 applies, at the time an accumulated
balance due to an employee is paid, deduct therefrom the amount payable under that rule and all the
provisions of Chapter XVII-B shall apply as if the accumulated balance were income chargeable under
the head “Salaries”.
11. Treatment of balance in newly recognised provident fund.—(1) Where recognition is accorded
to a provident fund with existing balances, an account shall be made of the fund up to the day
immediately preceding the day on which the recognition takes effect, showing the balance to the credit of
each employee on such day, and containing such further particulars as the Board may prescribe.
Where the accumulated balance due to an employee
participating in a recognised provident fund is included in his total income owing to the provisions of
rule 8 not being applicable, the 4[Assessing Officer] shall calculate the total of the various sums of
5[tax] which would have been payable by the employee in respect of his total income for each of the
years concerned if the fund had not been a recognised provident fund, and the amount by which such
total exceeds the total of all sums paid by or on behalf of such employee by way of 5[tax] for such
years shall be payable by the employee in addition to any other 5[tax] for which he may be liable for
the previous year in which the accumulated balance due to him becomes payable.
Where the accumulated balance due to an employee participating in a recognised provident fund
which is not included in his total income under the provisions of rule 8 becomes payable, an amount equal
to the aggregate of the amounts of super-tax on annual accretions that would have been payable under
section 58E of the Indian Income-tax Act, 1922 (11 of 1922), for any assessment year up to and including
the assessment year 1932-33, if the Indian Income-tax (Second Amendment) Act, 1933 (18 of 1933), had
come into force on the 15th day of March, 1930, shall be payable by the employee in addition to any
other tax payable by him for the previous year in which such balance becomes payable.
10. Deduction at source of tax payable on accumulated balance.—The trustees of a recognised
provident fund, or any person authorised by the regulations of the fund to make payment of accumulated
balances due to employees, shall, in cases where sub-rule
of rule 9 applies, at the time an accumulated
balance due to an employee is paid, deduct therefrom the amount payable under that rule and all the
provisions of Chapter XVII-B shall apply as if the accumulated balance were income chargeable under
the head “Salaries”.
11. Treatment of balance in newly recognised provident fund.—
Where recognition is accorded
to a provident fund with existing balances, an account shall be made of the fund up to the day
immediately preceding the day on which the recognition takes effect, showing the balance to the credit of
each employee on such day, and containing such further particulars as the Board may prescribe.