Superannuation Fund | Deduction Limit On Employer's Contribution Applies To Initial/Annual Contributions, Not Additional Payments: Delhi High Court

The Delhi High Court recently delivered a significant judgment regarding deductions under the Income Tax Act, 1961, particularly Section 36(1)(iv), in relation to employer contributions to superannuation funds. The Court ruled that the limits prescribed for such deductions apply only at the stage of setting up the fund or making ordinary annual payments. Contributions made over and above this, in discharge of an overarching obligation, would not be disallowed. Background…