Gratuity deduction restrictions limit provisions for employee gratuity, while approved funds and actual liabilities follow different treatment. Deduction for gratuity is restricted where only a provision is made for employee gratuity on retirement or termination, except for contributions to an approved gratuity fund or gratuity that has actually become payable during the year. Unapproved gratuity fund provisions are not deductible, and no second deduction is available when actual payment is made out of a provision already allowed. The material also distinguishes LIC premium treatment and notes that transfer of gratuity to a new employer may be treated as payment for deduction purposes.