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Rule 316Published

Rule 316: Definitions for gratuity fund Rules 317 to 329

Rule 316 defines four terms used in Rules 317 to 329. Rules 316 to 329 govern approved gratuity funds under Part B of Schedule XI to the Act.

Official notified Income-tax Rules, 2026

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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.

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Bare law

Rule 316 - Definitions for purposes of rules 317 to 329

For the purposes of rules 317 to 329, the expressions–

(a) "approving authority" means the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.

(b) "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;

(c) "fund" means a "gratuity fund"; and

(d) "trust" means the trust under which the fund is established and the expression "trustee" means a trustee thereof.

Rule breakdown

Definitions

Approving authority: Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner.

Beneficiary: a person referred to in paragraph 3(b) of Part B of Schedule XI for whom provision of gratuity is made.

Fund: a gratuity fund.

Trust and trustee: the trust under which the fund is established, and its trustee.

Key takeaways

Approving authority

PCCIT, CCIT, PCIT or CIT.

Fund

Means a gratuity fund.

Scope

Rules 317 to 329.

Practical checklist

  • Read Rules 317 to 329 with these definitions.

Avoid

  • Do not mix superannuation and gratuity definitions.

FAQs

Who is the approving authority?

The Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner (Rule 316(a)).

Who is a beneficiary?

A person referred to in paragraph 3(b) of Part B of Schedule XI for whom gratuity is provided.

Where are superannuation definitions?

Rule 301.

Glossary

Gratuity fund
A fund for payment of gratuity to employees.
Beneficiary
Defined in Rule 316(b).

Official sources

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