Approved gratuity fund deductions depend on statutory conditions, provision limits, and restrictions on duplicate claims. Employer's contribution to an approved gratuity fund is deductible only where the fund is created exclusively for employees under an irrevocable trust, and deductions are also available for permitted provisions made towards such contribution or for gratuity payable during the tax year. No deduction is allowed for provisions made for gratuity on retirement or termination, and no second deduction is permitted when actual payment is made from an already deducted provision. Earlier law also allowed deduction for approved gratuity fund contributions, subject to salary-based limits and treatment of certain gratuity payments and repayments as income or salary.
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.
Approved gratuity fund deductions depend on statutory conditions, provision limits, and restrictions on duplicate claims.
Employer's contribution to an approved gratuity fund is deductible only where the fund is created exclusively for employees under an irrevocable trust, and deductions are also available for permitted provisions made towards such contribution or for gratuity payable during the tax year. No deduction is allowed for provisions made for gratuity on retirement or termination, and no second deduction is permitted when actual payment is made from an already deducted provision. Earlier law also allowed deduction for approved gratuity fund contributions, subject to salary-based limits and treatment of certain gratuity payments and repayments as income or salary.
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