Power to make deductions

Section 6 of the Provident Funds Act, 1925 deals with power to make deductions. When the sum standing to the credit of any subscriber or depositor in any Government or Railway Provident Fund which is a contributory Provident Fund becomes payable, there may, if the authority [specified in this behalf in. The Act came into force on 01 Apr 1926.

When the sum standing to the credit of any subscriber or depositor in any Government or Railway Provident Fund which is a contributory Provident Fund becomes payable, there may, if the authority ¹[specified in this behalf in. the rules of the fund] so directs, be deducted therefrom and paid to ²[Government or the Railway administation, as the case may bed],--

(a) any amount due under a liability incurred by the subscriber or depositor to ²[Government or the Railway administration], but not exceeding in any case the total amount of any contributions credited to the account of the subscriber or depositor and of any interest or increment which has accrued on such contributions; or

(b) where the subscriber or depositor has been dismissed from ³[his employment] for any reasons specified in this behalf in the rules of the Fund, or where he has resigned such employment within five years of the commencement thereof, the whole or any part of the amount of any such contributions, interest and increment.

Section 6, The Provident Funds Act, 1925 (Act 19 of 1925).