REGISTERED No. D. (D.N.)-72
The Gazette of India
EXTRAORDINARY
PART II-Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 488] NEW DELHI, TUESDAY, NOVEMBER 1, 1983/KARTIKA 10, 1905 Separate Paging is given to this Part in order that it may be filed as a separate
compilation
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THE GAZETTE OF INDIA : EXTRAORDINARY [PART II-.SEC. 3(ii)]3
MINISTRY OF FINANCE
(Department of Revenue)
CENTRAL BOARD OF DIRECT TAXES NOTIFICATION
(Income-tax)
New Delh, the 1st November, 1983
S.O. 789QB).—In exercise of the powers con- ferred by section 295 of the Income-tax Act, 1961
4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II- -Snr. 3(ii)](43 of 1961), by the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, J 962, namely :—
1. (1) These rules may be called the Income- tax (Eighth Amendment) Rules, 1983.
(2) They shall be deemed to have come into force on the 3rd day of October, 1981.
2. In the Income-tax Rules, 1962, —
fa) for clause (d) of sub-rule (1) of rule 68, the following clause shall be substituted, namely :—
"(d) to meet the expenditure on building a house, or purchasing a site or a house and a site and, in the case of an employee whoss pay does not ex- ceed rupees one thousand and six hundred per month also on additions substantial alterations or improve- ments necessary to a house :
Provided that the employee furnishes an under- taking to the trustees not to encumber or alienate such house or site or house and site, as the case may be.
Explanation. —For the purposes of this clause "pay" shall have the meaning assigned to it in the Explanation to sub-rules (2A) and (2B) of rule 69;";.
(b) in rule 69, —
(1) in the opening portion of sub-rule(2), 'after the word and figures "rule 68" the words "by any employee whose pay exceeds rupees one thousand and six hundred per iTU,nlh," shall ba inserted;
(2) after sub-rule (2), the following sub-
rules shall be inserted, namely :—
(2A) The withdrawal for the purpose spe- cified in clause (d) of sub-rule (1) of rule 68, by any employee whose pay does not exceed rupees one thousand and six hundred per month," shall be subject to the following conditions, namely :•—
d") the amount of withdrawal shall not ex-
ceed —
(a) one-half of the1 amount standing to the employees credit in the fund; or
(b) the employee's basic wages and dearness allowance for twentyfour months; or
(c) the employee's contributions to the fund together with the specified percentage of the employer's contributions to that fund, with interest thereon,
whichever is more:
Providede that the amount of such withdrawal shall in no case exceed the actual cost of the house and or site.
Explanation.-—For the purposes of sub-clause
(c) "specified percentage" means —
(1) 75 per cent of the employer's contribution forming part of the accumulations as on the date of the authorisation of pay- ment, if the period of membership of the employee in the fund is five years or more, but less than ten years; and
(2) 85% of such contribution, if the period of membership of the employee in the fund is ten years or more: but less than fifteen years;
(ii) the employee shall have completed five years of service or is due to retire within the next ten years;
(iii) the withdrawal shall be permitted only if the house and|or site is free from encumbrances;
(iv) no withdrawal shall be permitted for pur- chasing a share in a joint property or a building or a house or land whose ownership is divided except where a site is owned jointly with the spouse;
(iv) where the withdrawal is for construction of a house, the payment of the withdrawal may be sanctioned in such number of instalments (not exceeding four) as the trustees of the fund think fit:
(vi) where the withdrawal is for the construc- tion of a house, the construction of the house should be commenced ithin six months of with- drawal and should be completed within twelve months of the withdrawal of final instalment.
(vii) if the withdrawal is made for the purchase of a house and [or a site for a house, the pur- chase should be made within six months of the withdrawal;
(viii) if the amount withdrawn exceeds the actual cost of the purchase or construction of the house and|or site or if the amount is not utilised for the purpose for which it is withdrawn, the excees or the whole amount, as the case may be, shall be refunded to the trustees forthwith in one lumpsum together with interest from the month of such withdrawal at the rate prescribed in sub- rule (4) of rule 71 and the amount so refunded shall be credited to the employee's account in the fund.
(2B) A withdrawal for additions, substantial alterations or improvements necessary to the house owned by the employee or jointly owned by the employee and the spouse may be granted once and in one instalment only to an employee whose pay does not exceed rupees one thousand and six hundred per month, upto six months basic wages and dearness allowance or the emp- loyee's own share of contribution with interest thereon or the amount standing to his credit in the fund, which ever is less:
Provided that the said withdrawal shall be admissible only after a period of five years from the date of purchase or completion of the house:
Provided further that where the amount with- drawn is not utilised in whole or in part for the purpose for which it was withdrawn, the excess or the whole amount, as the case may be, shall be refunded to the trustees forthwith in one lump- sum together with interest from the month of such withdrawal at the rato prescribed in sub- rule (4) of rule 71 and the amoilnt so refunded shall be credited to the employee's account in the fund.
Explanation.—For the purposes of sub-rules (2A) and (2B) "pay" includes basic wages with dearnesss allowance, retaining allowance (if any), and cash value of food concession admissible thereon, to which the employee is entitled at the timi when the withdrawal is granted or, in the caso of an employee referred to in sub-rule (2) of rule 5 of part A of the Fourth Schedule, the pav (including increments, if any) which he would have received had he not entered the armed fore-is of the Union or being taken into or employed in the national servh-e';
(3) in sub-rule (5), after the words "this rule" the brackets and words "[except sub-rules (2A) and (2B)"'" shall be inserted;
(c) in rule 71,— (1) in sub-rule (1), after the words, brackets and figure "sub-rule (2Y1 the words, brackets, letters and figures "or clause fviii) of sub-rule (2A) or the second proviso to sub;rule (2B)" shall be inserted;
/•" (2) in sub-rule (4), after the words, brackets and figure "sub-rule (2)", the words, brackets, letters and figure "or clause (viii) of sub-rule (2A)
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or the second proviso to sub-rule (2B)" shall be inserted,
INo. 5439 F. No. 142(15)82-TPU E.K. KOSHI, Director Central Board of Direct Taxes
Explanatory Memorandum
Certain provisions of the Employee's Provident Funds Scheme, 1952 framed under the Emp- loyees' Provident Funds and Miscellaneous Pro- visions Act, 1952 were liberalised and notified through Notification No. G.S.R. 549(E) dated 3rd October, 1981. Exempted provident funds under the said Scheme were required to conform to the amended provisions of the ScJ^me. How- ever, Commissioners of Income tax have been unable to approve for the purposes of Part A of Schedule IV to the Income-tax Act, 1961 and accord recognition to the prr.vidsnt funds which had amended their rules accordingly because, such amended rules were not in conformity with the rules contained in the Income-tax Rules, 1962. The Income-tax Rules, 1962 are, there- for;, being amended to enable Commissioners of Income-tax to approve amendment of the rules of provident funds in conformity with the amend- ed rules contained in the Employees' Provident Funds Scheme, 1952 and accord recognition to iuch provident funds with retrospective effect from 3rd October, 1981. The retrospective opera- tion of 'be amendments will not adversely affect a:iy person.
Note :—Principal rules were published unJer Notification Ko.S.O. 969 date;] 26-3-1962 and subsequently amen.ied hy S.O. No. 2021 d ^ ed 31-6-1952, 2565 daleJ 9-8-1962, 250S "j-ilcd 30-8-1963, 511 dated 4-2-1964, 2567 dated 27-7-1964, 3660 dated 13-10-1964, 169 dated 4-1-1965. 591 ..'.ated 15-2-1965, 860 dated 8-3-1965, 1086 d a t e! 30-3-1965, 1886 dated 10-6-1965,' 2153 dated 2-7-19.^5, 2704 ,1st id 27-8-1965, 189 d.itcd 13-1-1966,' 2451 dated 10-8-19'A 59S dated 1 3-2-1967. 84S .1 f- i 10-3-1967, 1949 dated 28-5-1967, 2460 date J 22-7-19t>7, 32 3 H •j.rcJ 6-9-1967,' 4588 dated 21-12-1967, 313 dated 29-2-1968, 1112 dated 18-3-1968 lH5GdateJ 22-5-J 968,2751 dated 2-8-1968,2S83 dated 24-S-1968,' 3494 dated 25-9-19'A 624 dated 14-2-1969, 625 dated ]±Z-1969, 201)0 dated 23-5-1969, 2005 d a ; :i 21-5-1969, 4427 dated 29-10-1969, 5056 daled 29-12-1969, (52 dated 9-1-1970, 719 dated 23-2-1970, 3398 dnted 11-10-1970, 3769 dated 1^-11-1970, 4dfJl dated 16-12-1970, 1917 d.ited 20-2-1971, 1^97 dated 11-5-1971, 2168 dated 28-5-1971. 2272 dated 31-5-1971', 5595 dated 30-12-1971,175 6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART JJ—SEC. 3(ii)]
35KE) dated 26-5-1980, 396(E) dated 12-6-1980, 434(E) da'ted 18-6-1980, 562(E) dated 24-7-1980, 695(E) dated 29-8-4980, 832(E) dated 1-10-1980, 894(E) dated.17-11-1980, 93KE) dated 1-12-1980, 4b(E) dated 22-1-198J, 47(E) dated 22-1-1981, 1I8(E) dated 20-2-1981,139(E) dated 28-2-1981, 396(E) dated 30-5-1981, 492(E) dated 19-6-1981. 558(E) dated 14-7-1981, 6l8(E) dated 1-8-1981, 824(E) dated 21-11-1981, 104(,E) dated 27-2-1982, 2b8(E) dated 12-4-1982, 365(E) dated 27-5-1982, 372(E) dated 29-5-1982, 433(E) dated 21-6-1982, 448(E) dated 26-6-J982, 472 (fi) dated 2-7-1982,546(E) dated 31-7-1982, 128(E) dated 2J-2-1983, 13KE) dated 23-2-1983, 146(E) dated 26-2-1983, 151(E) dated 28-2-1983, 152
(E) dated 18-12-1975, 134(E) dated 23-2-1976, 197(E) dated 15-3-1976, 2b6(E) dated 31-3-1976, 275(E) dated 1-4-1976. 420(E) tlaied 19-6-1976, 615(E) dated 16-9-f976, S42(B)datc"l 30-12-1r 76. 18(E) dated 12-1.-177, 23(E) dated 18-1-1977, 21(XE) dated 5-3-1977, 640(E) dated 27-8-1977, 665(E) dated 9-9-1977, 677(E) dated 22-9-1977, 720(E) dated 14-10-1977, 73
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