Deductibility of gratuity provisions: mere book provisions disallowed, but approved fund contributions and payable gratuities remain deductible. Mere book provisions for estimated service gratuity are not deductible in computing taxable profits; only contributions to an approved gratuity fund that became payable during the previous year and gratuity payments that became payable during the previous year remain deductible. If annual actuarial provisioning is begun, only the current year's provision is allowable; earlier unprovided liabilities are deductible only when paid. Provisions should be determined taking employee-level factors into account and supported by appropriate actuarial valuation and records.