Part DCA - Safe Harbour Rules for income referred to in clause (i) of sub-section (1) of section 9 chargeable to tax under the head (From Rule 10TI to Rule 10TIC)
Approved gratuity fund deductions are capped by salary and past service when employers make initial contributions. Approved gratuity funds: an employer's initial contribution made in respect of an employee's past services may be allowed as a deduction only up to a prescribed limit. The deductible amount is capped at 81/3 per cent of the employee's salary for each year of past service with the employer. The provision regulates the tax treatment of initial contributions to a gratuity fund by fixing the maximum allowable deduction and tying it to salary and completed years of service.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Approved gratuity fund deductions are capped by salary and past service when employers make initial contributions.
Approved gratuity funds: an employer's initial contribution made in respect of an employee's past services may be allowed as a deduction only up to a prescribed limit. The deductible amount is capped at 81/3 per cent of the employee's salary for each year of past service with the employer. The provision regulates the tax treatment of initial contributions to a gratuity fund by fixing the maximum allowable deduction and tying it to salary and completed years of service.
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