Rules 2026

Rule 316 of the Income-tax Rules, 2026

Rule 316 — Definitions for purposes of rules 317 to 329.

Where this rule sits

What this rule does

The rule defines four expressions for the purposes of rules 317 to 329. "Approving authority" means the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. "Beneficiary" means a person referred to in paragraph 3(b) of Part B of Schedule XI to the Act for whom provision of gratuity is made. "Fund" means a gratuity fund. "Trust" means the trust under which the fund is established, and "trustee" means a trustee of that trust.

Why it is there

Rules 317 to 329 govern approved gratuity funds — the conditions on the trust and trustees, investment of fund moneys, contributions, winding up and appeals — and each of them uses these four words repeatedly. Defining them once fixes who may approve, whose gratuity the fund secures, and which trust and trustee are meant, so that the operative rules can be read without qualification each time.

Who it applies to

A gratuity fund and the trust under which it is established, and its trustees
A beneficiary referred to in paragraph 3(b) of Part B of Schedule XI to the Act for whom provision of gratuity is made
The Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner acting as the approving authority under rules 317 to 329

What this means in practice

"Approving authority" is defined as a class of four ranks rather than a single officer, so any of them may act as the approving authority under rules 317 to 329 — the rule does not allocate the function among them. "Beneficiary" is not defined at large: it takes its content from paragraph 3(b) of Part B of Schedule XI to the Act, and a person outside that paragraph is not a beneficiary for these rules even if the fund provides for him. "Fund" is confined to a gratuity fund, so nothing in rules 317 to 329 reaches a provident or superannuation fund.

Where you meet this rule

A reader meets these definitions indirectly, whenever rules 317 to 329 are applied to an approved gratuity fund — in an application for approval, in the fund's investment and contribution decisions, and in an appeal from the approving authority's order.

The words themselves

"approving authority" means the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner

Rule 316(a), Income-tax Rules, 2026.

"beneficiary" means a person referred to in paragraph 3(b) of Part B of Schedule XI to the Act for whom provision of gratuity is made

Rule 316(b), Income-tax Rules, 2026.

What people get wrong

Reading "approving authority" as a single designated officer. Clause (a) covers four ranks.
Treating anyone the fund pays as a beneficiary. Clause (b) confines it to a person referred to in paragraph 3(b) of Part B of Schedule XI to the Act for whom provision of gratuity is made.
Carrying these definitions into rules outside the range. They apply for the purposes of rules 317 to 329.
Reading "fund" as any employee benefit fund. Clause (c) confines it to a gratuity fund.

Read with

What this page does not tell you. It does not reproduce the rule. Everything above was written from the rule’s own text as the Income Tax Department publishes it — the text is here. A rule is subordinate legislation: it prescribes the method, the form or the period, and it cannot enlarge the charge the section imposes. Where a figure matters, read the sub-rule it comes from.