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Rule 320 of Income Tax Rules - Admission of directors to a fund.

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Last Updated: 01-04-2026

320. Admission of directors to a fund.[i]

Where the employer is a company as defined in section 2(20) of the Companies Act, 2013 (18 of 2013), a director of the company may be admitted to the benefits of the fund only if he is a whole time bona fide employee of the company and does not beneficially own shares in the company carrying more than 5% of the total voting power.

 

[i] This Rule was inserted by N No. 22/2026 dt. 20-03-2026 wef 01-04-2026.