Section 322 — Initial contributions

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 anemployee 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.
Assigning or creating a charge on beneficial interest in a gratuity fund.
323. If an employee assigns or creates a charge upon his beneficial interest in a gratuity fund, the Assessing Officer shall give notice to the employee that if hedoes not secure the cancellation of the assignment or charge within two months of the date of receipt of the notice, the consideration received for suchassignment or charge shall be deemed to be income received by him in the tax year in which the fact became known to the Assessing Officer and shall beassessed accordingly.