Tax treatment of gratuity fund income: income received by trustees on behalf of approved gratuity funds is taxable, not exempt. Income received by trustees on behalf of a recognised provident fund or an approved superannuation fund is exempt under the income-tax law, whereas income received by trustees on behalf of an approved gratuity fund is not exempt and must be treated as taxable; the Board issued this instruction to inform Income Tax Officers and correct erroneous prior treatment.
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.
Tax treatment of gratuity fund income: income received by trustees on behalf of approved gratuity funds is taxable, not exempt.
Income received by trustees on behalf of a recognised provident fund or an approved superannuation fund is exempt under the income-tax law, whereas income received by trustees on behalf of an approved gratuity fund is not exempt and must be treated as taxable; the Board issued this instruction to inform Income Tax Officers and correct erroneous prior treatment.
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