Income Tax Act, 2025
Section 2: Definitions.—In this Part, unless the context otherwise requires,—
2. Definitions.—In this Part, unless the context otherwise requires,—
(a) “employer” means any person who maintains a provident fund for the benefit of his or its
employees, being—
(i) a Hindu undivided family, company, firm or other association of persons, or
(ii) an individual engaged in a business or profession the profits and gains whereof are
assessable to income-tax under the head “Profits and gains of business or profession”;
(b) “employee” means an employee participating in a provident fund, but does not include a
personal or domestic servant;
(c) “contribution” means any sum credited by or on behalf of any employee out of his salary, or
by an employer out of his own moneys, to the individual account of an employee, but does not
include any sum credited as interest;
(d) “balance to the credit of 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.
3. According and withdrawal of recognition.—(1) The 1[2[Principal Chief Commissioner or Chief
Commissioner] or 3[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 provident fund
contravenes any of those conditions:
“employer” means any person who maintains a provident fund for the benefit of his or its
employees, being—
a Hindu undivided family, company, firm or other association of persons, or
an individual engaged in a business or profession the profits and gains whereof are
assessable to income-tax under the head “Profits and gains of business or profession”;
“employee” means an employee participating in a provident fund, but does not include a
personal or domestic servant;
“contribution” means any sum credited by or on behalf of any employee out of his salary, or
by an employer out of his own moneys, to the individual account of an employee, but does not
include any sum credited as interest;
“balance to the credit of an employee” means the total amount to the credit of his individual
account in a provident fund at any time;
“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;
“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;
“regulations of a fund” means the special body of regulations governing the constitution and
administration of a particular provident fund; and
“salary” includes dearness allowance, if the terms of employment so provide, but excludes all
other allowances and perquisites.
3. According and withdrawal of recognition.—
The 1[2[Principal Chief Commissioner or Chief
Commissioner] or 3[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 provident fund
contravenes any of those conditions: