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Rule 102 of Income Tax Rules 1962: Admission of Directors to a Fund (Gratuity Funds)

Rule 102 : Admission of directors to a fund
(Part XIV : Approved Gratuity Funds)

"Where the employer is a company as defined in clause (i) of sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956), a director of the company may be admitted to the benefits of the fund only if he is a wholetime bona fide employee of the company and does not beneficially own shares in the company carrying more than five per cent of the total voting power."

Check at Income Tax Dept. official site for latest version of the Rule.

This page was created/last updated on 17th October 2016.