Income Tax Department

Ministry of Finance, Government of India

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Rule Number 304

Admission of directors to a fund

Rule Number

304

Upload Date

08/01/2026

Admission of directors to a fund.

304. A director of a company, as defined in section 2(20) of the Companies Act, 2013 (18 of 2013), may only receive benefits from the fund, 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.

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