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

Gratuity fund deduction permitted where employer contributes to an approved insurance-based gratuity arrangement enabling tax deduction.
Whether an employer must open a separate gratuity fund and obtain approval when gratuity liability is insured; employer contributions to an insurer-administered gratuity fund (such as LIC) are eligible for deduction, the reply relying on apex court authority confirming deductibility of contributions toward insurance-based gratuity arrangements.