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Rule 104 of Income Tax Rules 1962: Initial Contributions (Gratuity Funds)

Rule 104 : Initial contributions
(Part XIV : Approved Gratuity Funds)

The amount to be allowed as a deduction on account of an initial contribution which an employer may make in respect of the past services of an employee admitted to the benefits of a fund shall not exceed 8 and 1/3 per cent (8.33%) of the employee's salary for each year of his past service with the employer.






Reference/Source: Check at Income Tax site for latest version of the Rules - link

This page was last updated on 17th October 2016.

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