India - Income Tax Act 2010 - Saarc

R. 4 I.T. ACT, 1961 1.988(b) the contributions of an employee in any year shall be a definiteproportion of his salary for that year, and shall be deducted by theemployer from the employee’s salary in that proportion, at eachperiodical payment of such salary in that year, and credited to theemployee’s individual account in the fund;(c) the contributions of an employer to the individual account of anemployee in any year shall not exceed the amount of the contributionsof the employee in that year, and shall be credited to the employee’sindividual account at intervals not exceeding one year;(d) the fund shall be vested in two or more trustees or in the OfficialTrustee under a trust which shall not be revocable, save with theconsent of all the beneficiaries;(e) the fund shall consist of contributions as above specified, received bythe trustees, of accumulations thereof, and of interest credited inrespect of such contributions and accumulations, and of securitiespurchased therewith and of any capital gains arising from the transferof capital assets of the fund, and of no other sums;38[(ea) the fund shall be a fund of an establishment to which the provisionsof sub-section (3) of section 1 of the Employees’ Provident Funds andMiscellaneous Provisions Act, 1952 (19 of 1952) 39 apply or of anestablishment which has been notified by the Central Provident FundCommissioner under sub-section (4) of section 1 of the said Act, andsuch establishment shall obtain exemption under section 17 of thesaid Act from the operation of all or any of the provisions of anyscheme referred to in that section;](f) the employer shall not be entitled to recover any sum whatsoeverfrom the fund, save in cases where the employee is dismissed formisconduct or voluntarily leaves his employment otherwise than onaccount of ill-health or other unavoidable cause before the expirationof the term of service specified in this behalf in the regulations of thefund :Provided that in such cases the recoveries made by the employer shallbe limited to the contributions made by him to the individual accountof the employee, and to interest credited in respect of such contributionsin accordance with the regulations of the fund and the accumulationsthereof;38. Substituted by the Finance Act, 2007, w.e.f. 1-4-2007. Prior to its substitution, clause (ea)as inserted by the Finance Act, 2006, w.e.f. 1-4-2007, read as under :“(ea) the fund of an establishment to which the provisions of sub-section (3) or subsection(4) of section 1 of the Employees’ Provident Funds and MiscellaneousProvisions Act, 1952 (19 of 1952) apply, and such establishment has been exemptedunder section 17 of the said Act from the operation of all or any of the provisionsof any Scheme referred to in that section;”39. For text of section 1(3)/(4) of Employees’ Provident Funds & Miscellaneous ProvisionsAct, 1952, see Appendix.