Gratuity deduction rule clarified: excess gratuity debited where not paid to approved fund or to employees. The amendment renames the Second Schedule as the First Schedule and revises its sub heading. It inserts sub item (aa) in Item 3, treating as debitable gratuity amounts in excess of sums paid to or provided for an approved gratuity fund and amounts actually paid to employees on retirement or termination. It replaces the cash subsidy provision in Item 6 to cover subsidies from government, statutory corporate bodies or other agencies through budgetary grants reserved for specified purposes, and explains that 'approved gratuity fund' adopts the Income tax Act meaning.
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Gratuity deduction rule clarified: excess gratuity debited where not paid to approved fund or to employees.
The amendment renames the Second Schedule as the First Schedule and revises its sub heading. It inserts sub item (aa) in Item 3, treating as debitable gratuity amounts in excess of sums paid to or provided for an approved gratuity fund and amounts actually paid to employees on retirement or termination. It replaces the cash subsidy provision in Item 6 to cover subsidies from government, statutory corporate bodies or other agencies through budgetary grants reserved for specified purposes, and explains that "approved gratuity fund" adopts the Income tax Act meaning.
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