Rule 80 - Exemption from tax when recognition withdrawn - Income-tax Rules, 1962

Exemption from tax when recognition withdrawn. 80. If the Chief Commissioner or Commissioner withdraws recognition from aprovident fund, the balance to the credit of each employee at the end of the financial year prior to the date of the withdrawal of recognition shall, subject to the provisions of rule 9 of Part A of the Fourth Schedule, be paid to him free of tax at the time when such employee receives the accumulated balance due to him. The remainder of the accumulated balance due to him shall be liable to tax as if the fund had never been recognised.