https://www.taxtmi.com/acts?id=3930 Approved gratuity funds: an employer's initial contribution made in respect of an employee's past services may be allowed as a deduction only up to a prescribed limit. The deductible amount is capped at 81/3 per cent of the employee's salary for each year of past service with the employer. The provision regulates the tax treatment of initial contributions to a gratuity fund by fixing the maximum allowable deduction and tying it to salary and completed years of service. en-us Sat, 19 Jan 2008 22:45:54 +0530 Thu, 21 May 2026 12:33:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/acts?id=3930 Approved gratuity funds: an employer's initial contribution made in respect of an employee's past services may be allowed as a deduction only up to a prescribed limit. The deductible amount is capped at 81/3 per cent of the employee's salary for each year of past service with the employer. The provision regulates the tax treatment of initial contributions to a gratuity fund by fixing the maximum allowable deduction and tying it to salary and completed years of service. Act-Rules Income Tax Sat, 19 Jan 2008 22:45:54 +0530 https://www.taxtmi.com/acts?id=3930