Gratuity v/s Approved fund

[Naveen gawri]

Are We required to open Gratuity fund & Get it approved from CIT incase we have taken insurance against gratuity liability from LIC. ?

AI Summary

Company's LIC Gratuity Fund Contributions Eligible for Tax Deductions, No Additional Approval Needed Per Supreme Court Judgment A query was raised about whether a company needs to establish and get approval for a gratuity fund from the Commissioner of Income Tax if it has already secured insurance for gratuity liability from LIC. A Chartered Accountant responded, referencing a Supreme Court judgment, stating that employer contributions to an LIC gratuity fund are eligible for tax deductions.