Report No. 12

295. Employees' contributions -

Exemption for.- An employee participating in a recognised provident fund shall be entitled to a deduction, from the amount the income-tax on his total income with which he is chargeable for any assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on his own contributions to his individual account in the fund in the previous year, in so far as the aggregate of such contributions does not exceed one-fifth of his salary in that previous year or eight thousand rupees, whichever is less.

[Section 58F)