Regulatory Alerts2026-07-08
Added
PF-CIR-06-2019 – Benefits Provided by Provident Funds
The Registrar of Pension Funds requires all registered provident fund organizations to ensure their rules comply with the definition of a provident fund in Section 1 of the Income Tax Act, 1981, which mandates that funds be established solely for providing benefits upon retirement or for dependants of deceased former employees. The Authority will assess provident fund rules against this statutory definition to determine compliance. This directive follows a clarification from the Ministry of Finance confirming that while risk benefits like funeral or disability cover are permissible, they must be structured to meet the specific purpose requirements of the Income Tax Act.
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