Rules 312 to 316 of the Draft Income-tax Rules, 2026 set out the regulatory framework governing the administration, approval, and modification of approved gratuity or superannuation funds.
Rule 312 provides that any arrangement for winding up a fund or amalgamating it with another fund must receive prior approval from the approving authority and must comply with any conditions imposed by that authority.
Rule 313 specifies the procedure for obtaining approval of a superannuation fund under paragraph 4(1) of Part B of Schedule XI, requiring the application to be submitted in Form No. 188 and verified in the prescribed manner.
Rule 314 restricts changes to an approved fund by mandating that no alteration in its rules, constitution, objectives, or conditions can be made without prior approval from the approving authority, thereby ensuring regulatory oversight and protecting beneficiaries’ interests.
Rule 315 outlines the procedure for filing an appeal under paragraph 9(1) of Part B of Schedule XI, requiring the appeal to be filed in Form No. 187, verified as prescribed, and accompanied by a fee of ₹1,000.
Rule 316 provides definitions for key terms used in this Part, clarifying that a “beneficiary” refers to a person for whom gratuity provisions are made under the relevant schedule, a “fund” refers to a gratuity fund, and “trust” and “trustee” relate to the trust structure through which the fund is established and managed. It also defines the “approving authority” as the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner. Collectively, these rules establish procedural safeguards and administrative clarity to ensure proper governance, regulatory control, and protection of beneficiaries in approved gratuity and superannuation funds.
Extract of Rule No. 312, 313 and 314, 315, 316 of Draft Income-tax Rules, 2026
Rule 312
Arrangements for winding up, etc., of fund.
Any arrangements for the winding up of the fund or for its amalgamation with another fund shall be subject to the prior approval of, and subject to such conditions as may be imposed by the approving authority.
Rule 313
Application of approval
The application for approval of a Superannuation fund under paragraph 4(1) of Part B of Schedule XI shall be made in Form No. 188 and shall be verified in the manner indicated therein.
Rule 314
Amendment of rules, etc., of fund.
No alteration in the rules, constitution, objects or conditions of an approved fund shall be made without the prior approval of the approving authority.
Rule 315
Appeal
An appeal under paragraph 9(1) of Part B of Schedule XI shall be made in Form No. 187 and shall be verified in the manner indicated therein and shall be accompanied by a fee of Rs 1,000/-.
Rule 316
Definitions:
In this Part—
(a) “beneficiary” means a person referred to in paragraph 3(b) of Part B of Schedule XI for whom provision of gratuity is made;
(b) “fund” means a “gratuity fund”;
(c) “trust” means the trust under which the fund is established and “trustee” means a trustee thereof; and
(d) “approving authority” means the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
