SUBSCRIBE(free)-Daily Updates (Click Verification Link Received in Your Email)

Rule 70 of Income Tax Rules 1962: Second withdrawal

Rule 70 : Second withdrawal
(Part XII : Recognised Provident Funds)

(1) Save as in sub-rule (2) and sub-rule (3), a second withdrawal shall not be permitted until the sum first withdrawn has been fully repaid.

(2) A withdrawal may be permitted—
(a) for any purpose specified in clause (d) or clause (e) of sub-rule (1) of rule 68 notwithstanding that the sum withdrawn earlier for any purpose has not been repaid ;
(b) for any other purpose specified in sub-rule (1) of rule 68 notwithstanding that any sum withdrawn earlier for any purpose specified in clause (d) or clause (e) of the said sub-rule (1) has not been repaid.

(3) A withdrawal, referred to in clause (a) of sub-rule (2), of an amount equal to the difference between the amount of withdrawal admissible under sub-rule (2A) of rule 69 as on the date of application and the amount actually withdrawn by the employee for the purpose specified in clause (d) of sub-rule (1) of rule 68 any time during six years preceding the 3rd day of October, 1981, may be permitted to the employee, whose pay does not exceed rupees five thousand per month, subject to the following conditions, namely :—
(i) the employee had availed of the first withdrawal for purchase of a site and now proposes to construct a house on the site so purchased; or
(ii) the employee had availed of the first withdrawal for making initial payment towards allotment or purchase of a house from any of the agencies referred to in the second proviso to clause (d) of sub-rule (1) of rule 68 and now proposes to withdraw the amount for completing the transaction and for acquiring ownership of the house so purchased; or
(iii) the employee had availed of the first withdrawal for construction of a house but the said construction could not be completed due to shortage of funds.


Extra Notes for Readers:

- Sub-rule (3) of Rule 70 was inserted by the Income Tax (5th Amendment) Rules, 1985, w.e.f. 1st Aug 1985.


Reference/Source: Check at Income Tax site for latest version of the Rules - link

This page was last updated on 17th October 2016.
Submit/See Comments With: or

No comments:

Post a Comment