Income Tax Department

Ministry of Finance, Government of India

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Rule Number 322

Initial contributions

Rule Number

322

Upload Date

08/01/2026

Initial contributions.

322. 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 8⅓% of the salary of the employee for each year of his past service with the employer.

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