Rule 286 sets the requirements for approval of an employees' welfare fund: it is formed under a trust with a deed, funded by employees' periodical subscriptions, and approved on an application in Form No. 180 by the Principal Commissioner or Commissioner, for up to three tax years at a time.
286
Rules 2026 · Rule 286
Requirements for approval of a fund for welfare of employees and their dependents under Schedule VII [Table: Sl. No. 2] to Act
Rules 261-310
The requirements (sub-rules 1 to 3). A fund established for notified welfare purposes for employees and their dependants (where the employees are members) is formed under a trust evidenced by a trust deed, and contributions are made by employees by periodical subscription. The application is made in Form No. 180 to the Principal Commissioner or Commissioner having jurisdiction over the area where the accounts are kept, with the documents the form lists.
Decision (sub-rules 4 and 5). If satisfied that all the conditions in Schedule VII [Table: Sl. No. 2] and this rule are fulfilled, the Principal Commissioner or Commissioner records that in writing and grants approval, specifying the tax year or years, not exceeding three, for which it is valid; otherwise the application is rejected with reasons recorded in writing, and not without a reasonable opportunity of being heard.