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Rule 305 of Income Tax Rules - Ordinary annual contributions

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Last Updated: 01-04-2026

305. Ordinary annual contributions.[i]

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 recognized or not.

 

[i] This Rule was inserted by N No. 22/2026 dt. 20-03-2026 wef 01-04-2026.