Income Tax Department

Ministry of Finance, Government of India

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Rule Number 305

Ordinary annual contributions

Rule Number

305

Upload Date

08/01/2026

Ordinary annual contributions.

305. The yearly contribution of the employer to a fund for each employee shall not exceed 27% of their salary for each year as reduced by any contributions the employer made to a provident fund for the same employee during that year, whether recognised or not.

Footnotes