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Rule 320

Admission of directors to a fund

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 ifhe is a whole time *bonafide *employee of the company and does not beneficially own shares in the company carrying more than 5% of the total voting power.

Source: Income-tax Rules, 2026, notified by the CBDT vide G.S.R. 198(E) dated 20 March 2026. For reference only – please verify with the official Gazette.

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