Rule 295 says that if an employee assigns or creates a charge on a beneficial interest in a recognised provident fund, the Assessing Officer gives notice, and if it is not cancelled within two months of receipt, the consideration received is treated as income of the year in which the Officer learnt of it.
295
Rules 2026 · Rule 295
Assigning or creating a charge on beneficial interest in a recognized provident fund
Rules 261-310
The rule. The Assessing Officer, on learning of the assignment or charge, gives the employee notice that if he does not cancel it within two months of receiving the notice, the consideration received for it is deemed to be income received by the employee in the tax year in which the Assessing Officer became aware of it, and is assessed accordingly.