Rule 71 - Repayment of amounts withdrawn - Income-tax Rules, 1962

Repayment of amounts withdrawn. 71. (1) Subject to the provisions of clause ( viii ) of sub-rule (2) [or clause ( viii ) of sub-rule (2A) or the second proviso to sub-rule (2B)] of rule 69 where a withdrawal is allowed for a purpose specified in [clause ( d ) or clause ( dd ) or clause ( e ) or sub-clause ( i ) of clause ( h ) of sub-rule (1)] of rule 68, the amount withdrawn need not be repaid. (2) Where a withdrawal is allowed in connection with marriages as specified in clause ( c ) of sub-rule (1) of rule 68, the amount withdrawn shall be repaid in not more than forty-eight equal monthly instalments. (3) Where a withdrawal is allowed for any other purpose, the amount withdrawn shall be repaid in not more than twenty-four equal monthly instalments. (4) In respect of withdrawals referred to in sub-rules (2) and (3) and of the amount referred to in clause ( viii ) of sub-rule (2) [or clause ( viii ) of sub-rule (2A) or the second proviso to sub-rule (2B)] of rule 69, interest shall be paid in accordance with the following Table :- TABLE 1 2 Where the amounti s repaid in not more than 12 monthly instalments One additional instalment of 4% on the amount withdrawn Where the amount is repaid in more than12 monthly instalments butnot more than 24 monthly instalments Two additional instalments of 4% on the amount withdrawn Where the amount is repaid in more than 24 monthly instalments but not more than 36 monthly instalments Three additional instalments of 4% on the amount withdrawn Where the amount is repaid in more than 36 monthly instalments but not more than 48 monthly instalments Four additional instalments of 4% on the amount withdrawn Where the amount is refunded under clause ( viii ) of sub-rule (2) of rule 69 4% of the amount which is refundable : Provided that at the discretion of the trustees of the fund, interest may be recovered on the amount aforesaid or the balance thereof outstanding from time to time at one per cent above the rate which is payable for the time being on the balance in the fund at the credit of the employee. (5) The employer shall deduct the instalments aforesaid from the employees salary, and pay them to the trustees of the fund. These deductions shall commence from the second monthly payment of salary made after the withdrawal or, in the case of an employee on leave without pay, from the second monthly payment of salary made after his return to duty.