Rule 310: Assigning or charging interest in a superannuation fund
Rule 310 deals with an employee who assigns or creates a charge on his beneficial interest in a superannuation fund. Rules 301 to 315 govern approved superannuation funds under Part B of Schedule XI to the Act. The Assessing Officer gives notice. If the employee does not secure cancellation within two months of receiving it, the consideration received is deemed income of the tax year in which the fact became known to the Assessing Officer.
Official notified Income-tax Rules, 2026Need advice on Rule 310?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
Bare law
Rule 310 - Penalty, where employee assigns or charges interest in fund
Where an employee assigns or creates a charge upon his beneficial interest in a fund, the Assessing Officer shall give notice to the employee that if he does not secure the cancellation of the assignment or charge within two months of the date of receipt of the notice, the consideration received for such assignment or charge shall be deemed to be income received by him in the tax year in which the fact became known to the Assessing Officer and shall be assessed, accordingly.
Rule breakdown
Steps
AO gives notice.
Two months from receipt to secure cancellation.
Otherwise consideration is deemed income of the year the AO learnt of it.
Key takeaways
Two months
Window to cancel.
Deemed income
Consideration taxed if not cancelled.
Parallel rules
Same approach as Rules 295 and 323.
Practical checklist
- Cancel any assignment promptly after notice.
Avoid
- Do not assign your superannuation interest.
FAQs
What triggers Rule 310?
An employee assigning or creating a charge on his beneficial interest in a superannuation fund.
How long to cancel?
Two months from receipt of the notice.
Which year is it taxed in?
The tax year in which the fact became known to the Assessing Officer.
Glossary
- Assignment
- Transfer of the beneficial interest to another person.
- Consideration
- Amount received for the assignment or charge.