Deductibility limit for employee benefits: corporate payments exceeding one fifth of defined salary restricted for tax purposes. The amendment limits deduction for company expenditure that provides benefits, amenities or perquisites to employees: for expenditure incurred after 29 February 1964, any such amount is disallowed to the extent it exceeds one fifth of the employee's salary for the relevant employment period. Specified items (gratuity, travel concessions, passage moneys, certain sums under sections 17 and 36) are excluded from the computation. The term 'salary' is defined by reference to clause (h) of rule 2 of Part A of the Fourth Schedule.