Income Tax Act, 2025
Section 4: Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
4. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
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1[(c) the fund may also consist of any amount transferred from the individual account of an
employee in any recognised provident fund maintained by his former employer and the interest in
respect thereof.]
(4) Subject to any rules which the Board may make in this behalf, the 2[3[Principal Chief
Commissioner or Chief Commissioner] or 4[Principal Commissioner or Commissioner]] may, in respect
of any particular fund, relax the provisions of clause (c) of rule 4,—
(a) so as to permit the payment of larger contributions by an employer to the individual accounts
of employees whose salaries do not in each case exceed five hundred rupees per mensem; and
(b) so as to permit the crediting by employers to the individual accounts of employees of
periodical bonuses or other contributions of a contingent nature, where the calculation and payment
of such bonuses or other contributions is provided for on definite principles by the regulations of the
fund.
(5) Notwithstanding anything contained in clause (h) of rule 4, in order to enable an employee to pay
the amount of tax assessed on his total income as determined under sub-rule (4) of rule 11, he shall be
entitled to withdraw from the balance to his credit in the recognised provident fund a sum not exceeding
the difference between such amount and the amount to which he would have been assessed if the
transferred balance referred to in sub-rule (2) of rule 11 had not been included in his total income.
6. Employer’s annual contributions, when deemed to be income received by employee.—That
portion of the annual accretion in any previous year to the balance at the credit of an employee
participating in a recognised provident fund as consists of—
(a) contributions made by the employer in excess of 5[twelve] per cent. of the salary of the
employee, and
(b) interest credited on the balance to the credit of the employee in so far as it 6*** is allowed at a
rate exceeding such rate as may be fixed by the Central Government in this behalf by notification in
the Official Gazette,
shall be deemed to have been received by the employee in that previous year and shall be included in his
total income for that previous year, and shall be liable to income-tax 7***.
8[7. Exemption for employee’s contributions.—An employee participating in a recognised
provident fund shall, in respect of his own contributions to his individual account in the fund in the
previous year, be entitled to a deduction in the computation of his total income of an amount determined
in accordance with 9[section 80C].]
8. Exclusion from total income of accumulated balance.—The accumulated balance due and
becoming payable to an employee participating in a recognised provident fund shall be excluded from the
computation of his total income—
(i) if he has rendered continuous service with his employer for a period of five years or more, or
the fund may also consist of any amount transferred from the individual account of an
employee in any recognised provident fund maintained by his former employer and the interest in
respect thereof.]
Subject to any rules which the Board may make in this behalf, the 2[3[Principal Chief
Commissioner or Chief Commissioner] or 4[Principal Commissioner or Commissioner]] may, in respect
of any particular fund, relax the provisions of clause
of rule 4,—
so as to permit the payment of larger contributions by an employer to the individual accounts
of employees whose salaries do not in each case exceed five hundred rupees per mensem; and
so as to permit the crediting by employers to the individual accounts of employees of
periodical bonuses or other contributions of a contingent nature, where the calculation and payment
of such bonuses or other contributions is provided for on definite principles by the regulations of the
fund.
Notwithstanding anything contained in clause
of rule 4, in order to enable an employee to pay
the amount of tax assessed on his total income as determined under sub-rule
of rule 11, he shall be
entitled to withdraw from the balance to his credit in the recognised provident fund a sum not exceeding
the difference between such amount and the amount to which he would have been assessed if the
transferred balance referred to in sub-rule
of rule 11 had not been included in his total income.
6. Employer’s annual contributions, when deemed to be income received by employee.—That
portion of the annual accretion in any previous year to the balance at the credit of an employee
participating in a recognised provident fund as consists of—
contributions made by the employer in excess of 5[twelve] per cent. of the salary of the
employee, and
interest credited on the balance to the credit of the employee in so far as it 6*** is allowed at a
rate exceeding such rate as may be fixed by the Central Government in this behalf by notification in
the Official Gazette,
shall be deemed to have been received by the employee in that previous year and shall be included in his
total income for that previous year, and shall be liable to income-tax 7***.
8[7. Exemption for employee’s contributions.—An employee participating in a recognised
provident fund shall, in respect of his own contributions to his individual account in the fund in the
previous year, be entitled to a deduction in the computation of his total income of an amount determined
in accordance with 9[section 80C].]
8. Exclusion from total income of accumulated balance.—The accumulated balance due and
becoming payable to an employee participating in a recognised provident fund shall be excluded from the
computation of his total income—
if he has rendered continuous service with his employer for a period of five years or more, or