Section 322: Initial contributions
Initial contributions.
322. The amount to be allowed as a deduction on account of an initial contribution, which an employer may make in respect of the past services of an employee admitted to the benefits of a fund, shall not exceed 8⅓% of the salary of the employee for each year of his past service with the employer.
Source: official text of Income-tax Rules, 2026 as published on India Code (PDF). All sections of Income-tax Rules, 2026.