RULE 292 INCOME-TAX RULES 2026
Investment of fund moneys.
292. (1) All contributions to a provident fund, whether made by the employer or the employees, or transferred from an individual account of the employee in a recognized provident fund maintained by a former employer, or accrued as interest or otherwise, shall be invested in the instruments given in column 2 of the following Table subject to the percentages given in column 3 thereof:
TABLE
| Sl. No. | Investment | Percentage amount to be invested in items referred to in column 2 |
| 1 | 2 | 3 |
| 1. | Government Securities and Related Investments. | Minimum 45%. |
| 2. | Debt Instruments and Related Investments. | Minimum 35%. |
| 3. | Short-term Debt Instruments and Related Investments. | Up to 5%. |
| 4. | Equities and Related Investments. | Minimum 5%. |
| 5. | Asset Backed, Trust Structured and Miscellaneous Investments. | Up to 5%. |
(2) The nature of investments referred to in sub-rule (1) shall have their respective meanings as specified in notification number S.O. 1433(E) dated the 29th of May, 2015, issued by the Ministry of Labour and Employment, Government of India in this behalf, as amended from time to time, and the said investments shall be subject to such conditions as specified in the said notification.
(3) Any funds that are not invested in the manner specified under sub-rule (1) may be deposited into-
| (i) | a Post Office Savings Bank Account in India; or | |
| (ii) | a current account or Savings Bank Account with any scheduled bank. |
(4) For the purposes of this rule,—
| (a) | the expression “Government securities” shall have the same meaning as assigned to it in section 2(f) of the Government Securities Act, 2006 (38 of 2006); | |
| (b) | the manner of investment specified in sub-rule (1) shall apply to the aggregate amount of moneys with the fund in the tax year; | |
| (c) | moneys received on transfer, maturity or realisation of any security or deposit forming part of a fund or by withdrawal from any account in a bank (including a Post Office Savings Bank Account) shall be deemed to be moneys accruing to the fund; and | |
| (d) | “scheduled bank” means- |
| (i) | the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); or | |
| (ii) | a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959) ; or | |
| (iii) | a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); or | |
| (iv) | any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934). |