RPF / NPS / Super accretion (s. 17(1)(i))

The formula (sub-rule 1). Taxable perquisite for the current tax year is TP = (PC / 2) × R + (PC1 + TP1) × R, where:

• TP = taxable perquisite under section 17(1)(i) for the current tax year;
• TP1 = aggregate taxable perquisite under section 17(1)(i) for the tax year or years beginning on or after 1 April 2020, other than the current year;
• PC = aggregate principal contribution by the employer in excess of the Rs. 7,50,000 limit to the specified fund or scheme during the tax year;
• PC1 = the same excess contribution for the tax year or years beginning on or after 1 April 2020, other than the current year;
• R = I / F(avg.), where I is the income accrued in the account during the current year and F(avg.) is the average of the balance on the first and last day of the current year.

Definitions and a limit (sub-rule 2). "Specified fund or scheme" is a fund or scheme referred to in section 17(1)(h). If the aggregate of TP1 and PC1 exceeds the balance to the credit of the fund or scheme on the first day of the current year, the excess is ignored when computing TP1 and PC1.