1. Conditions for approval.—

(1) In order that a Gratuity Fund may receive and retain approval, it shall satisfy the conditions hereinafter specified and any other conditions which the Board may prescribe—

(a) the fund shall be a fund established under an irrevocable trust in connection with trade or undertaking carried on in Bangladesh and not less than 90% (ninety per cent) of the employees of such trade or undertaking shall be employed in Bangladesh;

(b) the fund shall have for its sole purpose the provision of a gratuity to employees in the trade or undertaking on their retirement or after a specified age or on their becoming incapacitated prior to such retirement, or on termination of their employment after a minimum period of service specified in the regulations of the fund or to the widows, children or dependents of such employees on their death;

(c) the employer in the trade or undertaking shall be a contributor to the fund; and

(d) all benefits granted by the fund shall be payable only in Bangladesh.

(2) The order shall come into effect from the date on which the Board communicates to the Trustee of the fund in writing of the order by approving or withdrawing the same.

2. Procedure for approval.—

(1) An application for approval of a Gratuity Fund shall be made by any trustee of the respective fund to the Commissioner under whom its tax is assessed as an assessee in a prescribed manner.

(2) If any alteration in the rules, constitution, objects or conditions of the fund is made at any time after the date of the application for approval, the applicant shall immediately communicate to the commissioner of such alteration.

(3) The Commissioner shall consider the application, related records and documents in his possession and he may require such further information to be supplied as he thinks proper for consideration.

(4) While considering the application, the Commissioner may, if necessary, direct the applicant to appear before him.

(5) The Commissioner shall give his decision on the application by written order, within 180 (one hundred eighty) days from the date of receipt of the application and for any failure to do so, such funds shall be deemed to have been approved.

(6) The approved order shall be included the following, namely:-

(a) conditions and qualifications of approval;

(b) effective date of approval; and

(c) expiry date of approval.

(7) In cases where the date of approval is not specified, it shall be effective from the date on which the approval order is passed.

(8) If the approval is given for a certain period, the trustee shall apply for the extension before the expiration of the said period.

3. Withdrawal of approval.—

(1) If the Commissioner is satisfied that the conditions mentioned in paragraphs 2 and 3 have been violated or not fulfilled by the concerned Gratuity Fund, the Commissioner may withdraw the said approval at any time.

(2) Where the effective date of cancellation is not specified, it shall take effect from the date on which the order of cancellation is approved.

(3) The Commissioner shall not withdraw the approval without giving the applicant a reasonable opportunity of being heard.

(4) Where the approval under sub-paragraph (1) is withdrawn, the Commissioner shall notify the Trustee of the fund in writing stating the following—

(a) reasons for such withdrawal; and

(b) effective date of withdrawal

(5) Where approval is given for a specified period, it shall automatically terminate on the expiry of such period, if the further approval is sought again the trustee shall apply newly under paragraph 2.

4. Provisions relating to income and subscriptions to the Fund.—

Any sum paid by an employer as contribution towards an approved Gratuity Fund shall be deducted in computing his income, profits and gains for the purpose of assessment.

5. Management of repaid subscriptions.—

Where the contribution paid by an employer (including interest on the contribution, if any) is repaid to the said employer, such refund shall be shown as income in his tax assessment in the assessment year in which such refund is received by the employer.

6. Particulars to be furnished in respect of Gratuity Fund.—

The trustees of an approved Gratuity Fund and any employer who contributes to an approved Gratuity Fund shall, when required by notice from the Deputy Commissioner of taxes, furnish, within such period as may be specified in the notice, such return, statement, particulars or information as the Deputy Commissioner of Taxes may require.

7. The provisions of this Part shall prevail over the rules of the fund.—

Where there is any inconsistency with any regulation of the Gratuity Fund and any provision of this Part or any rule made under this Part, the inconsistent part of the Gratuity Fund Regulations shall be deemed to be invalid and the Board may at any time direct the removal of the inconsistent part of the Gratuity Fund Regulations.

8. Explanation.—

For the purposes of this part, the expressions ‘contribution, employee, employer’, ‘regulation of fund’ and ‘salary’ of the fund shall have the same meaning as in relation to provident fund.