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Rule 103 of Income Tax Rules 1962: Ordinary Annual Contributions(Gratuity Funds)

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."

Check at Income Tax Dept. official site for latest version of the Rule.

This page was created/last updated on 17th October 2016.