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<h1>Employer initial contribution cap limits deductible contributions per year of past service under tax rules.</h1> Rule 322 limits the deduction for an employer's initial contribution made for an employee's past service upon admission to a fund to not exceed 81/3% of the employee's salary for each year of that past service, tying the allowable deduction to a per year salary-based cap under the Income Tax Rules, 2026.
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