Employer initial contribution cap limits deductible contributions per year of past service under tax rules. 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 ... Summary
Employer initial contribution cap limits deductible contributions per year of past service under tax rules.
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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