Income Tax Department

Ministry of Finance, Government of India

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Rule Number 320

Admission of directors to a fund

Rule Number

320

Upload Date

08/01/2026

Admission of directors to a fund.

320. 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.

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