Taxable perquisite on annual accretion in specified funds is computed using employer contributions and accrued income. Annual accretion in the specified fund or scheme is a taxable perquisite under the salary provisions when it consists of interest, dividend, or similar income credited during the previous year. The rule prescribes a formula based on excess employer contribution, accrued income, and the average balance of the fund or scheme, and defines the variables used in that computation. It also requires prior-year taxable perquisite amounts and excess contributions to be carried into the current year, subject to a cap linked to the opening balance.