Taxable perquisite on annual accretion is computed by formula for specified fund or scheme balances and employer contributions. Annual accretion by way of interest, dividend or similar amounts credited during the current tax year to a specified fund or scheme is treated as a taxable perquisite under section 17(1)(i) through a prescribed formula. The computation is linked to excess principal contribution by the employer, prior taxable perquisite amounts, and the ratio of accrued income to the average opening-and-closing balance of the fund or scheme account. The rule also defines specified fund or scheme by reference to section 17(1)(h) and ignores any excess where prior amounts exceed the opening balance.