Income Tax Act, 2025
Section 7: Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
7. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
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1[(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 Miscellaneous Provisions Act, 1952 (19 of 1952)
apply or of an establishment which has been notified by the Central Provident Fund Commissioner
under sub-section (4) of section 1 of the said Act, and such establishment shall obtain exemption
under section 17 of the said Act from the operation of all or any of the provisions of any scheme
referred to in that section;]
(f) the employer shall not be entitled to recover any sum whatsoever from the fund, save in cases
where the employee is dismissed for misconduct or voluntarily leaves his employment otherwise than
on account of ill-health or other unavoidable cause before the expiration of the term of service
specified in this behalf in the regulations of the fund:
Provided that in such cases the recoveries made by the employer shall be limited to the
contributions made by him to the individual account of the employee, and to interest credited in
respect of such contributions in accordance with the regulations of the fund and the accumulations
thereof;
(g) the accumulated balance due to an employee shall be payable on the day he ceases to be an
employee of the employer maintaining the fund;
(h) save as provided in clause (g) or in accordance with such conditions and restrictions as the
Board may, by rules, specify, no portion of the balance to the credit of an employee shall be payable
to him.
5. Relaxation of conditions.—(1) Notwithstanding anything contained in clause (a) of rule 4, the
2[3[Principal Chief Commissioner or Chief Commissioner] or 4[Principal Commissioner or
Commissioner]] may, if he thinks fit and subject to such conditions, if any, as he thinks proper to attach to
the recognition, accord recognition to a fund maintained by an employer whose principal place of
business is not in India, provided the proportion of employees employed outside India does not exceed ten
per cent.
(2) Notwithstanding anything contained in clause (b) of rule 4, an employee who retains his
employment while serving in the armed forces of the Union or when taken into or employed in the
national service under any law for the time being in force, may, whether he receives from the employer
any salary or not, contribute to the fund during his service in the armed forces of the Union or while so
taken into or employed in the national service a sum not exceeding the amount he would have contributed
had he continued to serve the 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;
the fund shall be a fund of an establishment to which the provisions of sub-section
of
section 1 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952)
apply or of an establishment which has been notified by the Central Provident Fund Commissioner
under sub-section
of section 1 of the said Act, and such establishment shall obtain exemption
under section 17 of the said Act from the operation of all or any of the provisions of any scheme
referred to in that section;]
the employer shall not be entitled to recover any sum whatsoever from the fund, save in cases
where the employee is dismissed for misconduct or voluntarily leaves his employment otherwise than
on account of ill-health or other unavoidable cause before the expiration of the term of service
specified in this behalf in the regulations of the fund:
Provided that in such cases the recoveries made by the employer shall be limited to the
contributions made by him to the individual account of the employee, and to interest credited in
respect of such contributions in accordance with the regulations of the fund and the accumulations
thereof;
the accumulated balance due to an employee shall be payable on the day he ceases to be an
employee of the employer maintaining the fund;
save as provided in clause
or in accordance with such conditions and restrictions as the
Board may, by rules, specify, no portion of the balance to the credit of an employee shall be payable
to him.
5. Relaxation of conditions.—
Notwithstanding anything contained in clause
of rule 4, the
2[3[Principal Chief Commissioner or Chief Commissioner] or 4[Principal Commissioner or
Commissioner]] may, if he thinks fit and subject to such conditions, if any, as he thinks proper to attach to
the recognition, accord recognition to a fund maintained by an employer whose principal place of
business is not in India, provided the proportion of employees employed outside India does not exceed ten
per cent.
Notwithstanding anything contained in clause
of rule 4, an employee who retains his
employment while serving in the armed forces of the Union or when taken into or employed in the
national service under any law for the time being in force, may, whether he receives from the employer
any salary or not, contribute to the fund during his service in the armed forces of the Union or while so
taken into or employed in the national service a sum not exceeding the amount he would have contributed
had he continued to serve the employer.
Notwithstanding anything contained in clause
or clause
of rule 4,—
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;
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;