Income Tax Act, 2025
Section 5: Subs. by Act 10 of 1965, s. 66, for “income-tax and super tax” (w.e.f. 11965).
5. Subs. by Act 10 of 1965, s. 66, for “income-tax and super tax” (w.e.f. 11965).
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(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 1*** 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 2[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 be deemed to be income
received by the employee in the previous year in which the recognition of the fund takes effect and shall
be included in the employee’s total income for that previous year, and, for the purposes of assessment, the
remainder of the transferred balance shall be disregarded, but no other exemption or relief, by way of
refund or otherwise, shall be granted in respect of any sum comprised in such transferred balance:
Provided that, in cases of serious accounting difficulty, the 3[4[Principal Chief Commissioner or Chief
Commissioner] or 5[Principal Commissioner or Commissioner]] may, subject to the said rules, make a
summary calculation of such aggregate.
(5) Nothing in this rule shall affect the rights of the persons administering an unrecognised provident
fund or dealing with it, or with the balance to the credit of any individual employee before recognition is
accorded, in any manner which may be lawful.
12. Accounts of recognised provident funds.—(1) The accounts of a recognised provident fund
shall be maintained by the trustees of the fund and shall be in such form and for such periods, and shall
contain such particulars, as the Board may prescribe.
(2) The accounts shall be open to inspection at all reasonable times by income-tax authorities, and the
trustees shall furnish to the 2[Assessing Officer] such abstracts thereof as the Board may prescribe.
13. Appeals.—(1) An employer objecting to an order of the 3[4[Principal Chief Commissioner or
Chief Commissioner] or 5[Principal Commissioner or Commissioner]] refusing to recognise or an order
withdrawing recognition from a provident fund 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 the Board may prescribe.
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
of this rule and sub-rule
of rule 5 shall apply thereto.
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 1*** in accordance with the provisions of this Act, other than this Part.
Subject to such rules as the Board may make in this behalf, the 2[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 be deemed to be income
received by the employee in the previous year in which the recognition of the fund takes effect and shall
be included in the employee’s total income for that previous year, and, for the purposes of assessment, the
remainder of the transferred balance shall be disregarded, but no other exemption or relief, by way of
refund or otherwise, shall be granted in respect of any sum comprised in such transferred balance:
Provided that, in cases of serious accounting difficulty, the 3[4[Principal Chief Commissioner or Chief
Commissioner] or 5[Principal Commissioner or Commissioner]] may, subject to the said rules, make a
summary calculation of such aggregate.
Nothing in this rule shall affect the rights of the persons administering an unrecognised provident
fund or dealing with it, or with the balance to the credit of any individual employee before recognition is
accorded, in any manner which may be lawful.
12. Accounts of recognised provident funds.—
The accounts of a recognised provident fund
shall be maintained by the trustees of the fund and shall be in such form and for such periods, and shall
contain such particulars, as the Board may prescribe.
The accounts shall be open to inspection at all reasonable times by income-tax authorities, and the
trustees shall furnish to the 2[Assessing Officer] such abstracts thereof as the Board may prescribe.
13. Appeals.—
An employer objecting to an order of the 3[4[Principal Chief Commissioner or
Chief Commissioner] or 5[Principal Commissioner or Commissioner]] refusing to recognise or an order
withdrawing recognition from a provident fund may appeal, within sixty days of such order, to the Board.
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 the Board may prescribe.