Perquisite deduction limit restricts employer deductions for employee benefits, treating contractual bonuses as salary and gratuitous payments as perquisites. Employer expenditures that provide benefits, amenities or perquisites to employees are deductible only to a limited extent, with the amount measured against salary as defined in rule 2(h) of Part A of the Fourth Schedule (including dearness allowance only where agreed). Reimbursements and in kind benefits (medical, utilities, domestic staff, rent free accommodation, motorcar, club bills, etc.) are treated as perquisites within that limit. Bonus or commission constitute salary when contractual, statutory, or otherwise binding; gratuitous or discretionary payments are perquisites.