India - Income Tax Act 2010 - Saarc

1.991 SCH. IV - RECOGNISED PROVIDENT FUNDS R. 10(ii) if, though he has not rendered such continuous service, the servicehas been terminated by reason of the employee’s ill-health, or by thecontraction or discontinuance of the employer’s business or othercause beyond the control of the employee, 49 [or]49[(iii) if, on the cessation of his employment, the employee obtains employmentwith any other employer, to the extent the accumulated balancedue and becoming payable to him is transferred to his individualaccount in any recognised provident fund maintained by such otheremployer.Explanation.—Where the accumulated balance due and becoming payable to anemployee participating in a recognised provident fund maintained by his employerincludes any amount transferred from his individual account in any otherrecognised provident fund or funds maintained by his former employer oremployers, then, in computing the period of continuous service for the purposesof clause (i) or clause (ii) the period or periods for which such employee renderedcontinuous service under his former employer or employers aforesaid shall beincluded.]Tax on accumulated balance.9. (1) Where the accumulated balance due to an employee participating in arecognised provident fund is included in his total income owing to the provisionsof rule 8 not being applicable, the 50 [Assessing] Officer shall calculate thetotal of the various sums of 51 [tax] which would have been payable by the employeein respect of his total income for each of the years concerned if the fundhad not been a recognised provident fund, and the amount by which such totalexceeds the total of all sums paid by or on behalf of such employee by way of taxfor such years shall be payable by the employee in addition to any other 51 [tax]for which he may be liable for the previous year in which the accumulatedbalance due to him becomes payable.(2) Where the accumulated balance due to an employee participating in arecognised provident fund which is not included in his total income under theprovisions of rule 8 becomes payable, an amount equal to the aggregate of theamounts of super-tax on annual accretions that would have been payable undersection 58E of the Indian Income-tax Act, 1922 (11 of 1922), for any assessmentyear up to and including the assessment year 1932-33, if the Indian Income-tax(Second Amendment) Act, 1933 (18 of 1933), had come into force on the 15thday of March, 1930, shall be payable by the employee in addition to any othertax payable by him for the previous year in which such balance becomespayable.Deduction at source of tax payable on accumulated balance.10. The trustees of a recognised provident fund, or any person authorised bythe regulations of the fund to make payment of accumulated balances due49. Inserted by the Finance Act, 1974, w.e.f. 1-4-1975.50. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.51. Substituted for “income-tax and super tax” by the Finance Act, 1965, w.e.f. 1-4-1965.