Rule 323 provides that if an employee assigns or charges a beneficial interest in a gratuity fund, the Assessing Officer gives notice, and if it is not cancelled within two months of receipt, the consideration received is treated as the employee's income of the year in which the Officer learned of it.
323
Rules 2026 · Rule 323
Assigning or creating a charge on beneficial interest in a gratuity fund (approved gratuity fund)
Rules 311-333
The rule. The Assessing Officer gives the employee notice that if he does not secure the cancellation of the assignment or charge within two months of receiving the notice, the consideration received is deemed to be income received by him in the tax year in which the fact became known to the Assessing Officer, and is assessed accordingly.