https://www.taxtmi.com/caselaws?id=61993 A provision for gratuity under the Kerala Industrial Employees Payment of Gratuity Act, 1970 is treated as a statutory liability accruing year to year, so deduction cannot be refused merely because employees have not yet completed five years of service. However, the year-end provision must be measured at present value, and a proper discounted valuation, preferably on actuarial principles, is required to quantify the deductible amount accurately. The basic deductibility in principle is sustained, but the liability must be reworked on a fresh discounted basis. en-us Sat, 02 Aug 1975 00:00:00 +0530 Tue, 18 Jan 2011 10:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61993 A provision for gratuity under the Kerala Industrial Employees Payment of Gratuity Act, 1970 is treated as a statutory liability accruing year to year, so deduction cannot be refused merely because employees have not yet completed five years of service. However, the year-end provision must be measured at present value, and a proper discounted valuation, preferably on actuarial principles, is required to quantify the deductible amount accurately. The basic deductibility in principle is sustained, but the liability must be reworked on a fresh discounted basis. Case-Laws Income Tax Sat, 02 Aug 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61993