Deductibility of gratuity provisions curtailed: mere book provisions are disallowable while approved fund contributions remain deductible. The Finance Act, 1975 disallows deduction for mere accounting 'provisions' for estimated gratuity payable to employees; only contributions to approved irrevocable gratuity funds and gratuity sums that have actually become payable remain deductible. Earlier Board circulars permitting actuarial annual provisions as deductible business expenses were withdrawn following judicial developments. Where provisioning starts in a current year only that year's provision is allowable and prior liabilities are deductible only when paid; employers should maintain separate records and ensure actuarial valuations reflect individual employee factors.