Estate duty clearance requirement relaxed for gratuity and pension payments; indemnity and affidavit required from heirs. Employers may make concessionary payments of provident fund balances, gratuity and pension to legal heirs without an estate duty clearance certificate, provided the claimant files an affidavit that the property does not attract estate duty and furnishes an indemnity bond indemnifying the employer against any subsequent estate duty liability; the employer's statutory liability remains unaffected but may be recovered from payees under the indemnity bond if estate duty is later claimed.
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.
Estate duty clearance requirement relaxed for gratuity and pension payments; indemnity and affidavit required from heirs.
Employers may make concessionary payments of provident fund balances, gratuity and pension to legal heirs without an estate duty clearance certificate, provided the claimant files an affidavit that the property does not attract estate duty and furnishes an indemnity bond indemnifying the employer against any subsequent estate duty liability; the employer's statutory liability remains unaffected but may be recovered from payees under the indemnity bond if estate duty is later claimed.
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