Rule 298 lets the approving authority withdraw recognition of a provident fund that fails the conditions in Part A of the Fourth Schedule to the old Act or Parts A and C of Schedule XI, including when exemption under section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is withdrawn, after giving the employer and trustees a chance to show cause.
298
Rules 2026 · Rule 298
Withdrawal of recognition (recognised provident fund)
Rules 261-310
The rule. The approving authority may revoke recognition if the fund fails to meet the conditions in Part A of the Fourth Schedule to the Income-tax Act, 1961 as it existed before repeal, or in Parts A and C of Schedule XI to the Act, or conditions set after recognition under either, and recognition may be withdrawn if the exemption granted under section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is withdrawn under section 17(4) of that Act (sub-rule 1). Before withdrawing recognition, the approving authority gives the employer and the trustees an opportunity to show cause why it should not be withdrawn (sub-rule 2).