Rule 103 : Ordinary annual contributions
(Part XIV : Approved Gratuity Funds)
The ordinary annual contribution by the employer to a fund shall be made on a reasonable basis as may be approved by the Chief Commissioner or Commissioner having regard to the length of service of each employee concerned so, however, that such contribution shall not exceed 8 and 1/3 per cent (8.33%) of the salary of each employee during each year.
Reference/Source: Check at Income Tax site for latest version of the Rules - link
This page was last updated on 17th October 2016.