Limit on deductible employer perquisites restricts employer deductions for employee benefits; contractual bonuses treated as salary, gratuitous payments as perquisites. Expenditure by an employer that provides benefits, amenities or perquisites to employees is deductible only up to one fifth of the salary payable to the employee; 'salary' for this purpose follows rule 2(h) of Part A of the Fourth Schedule and includes dearness allowance only if employment terms so provide, excluding other allowances and perquisites. Reimbursements and in kind provisions such as medical expenses, utilities, domestic servants, club bills, rent free accommodation and motorcar use qualify as perquisites subject to the one fifth ceiling. Bonus and commission are classified by reference to their contractual or gratuitous character.