https://www.taxtmi.com/caselaws?id=470341 Provision for leave encashment determined through actuarial valuation may be treated as application of income for charitable purposes when computing exemption under section 11. For an entity following the accrual system, a separately funded provision representing a genuine and ascertained employee-benefit liability at year-end is a crystallised outgoing. Income available for charitable application is computed on commercial principles, allowing deduction of an honestly determined provision even where payment has not occurred during the relevant year. The provision is therefore eligible as application of income for charitable purposes. en-us Wed, 19 Mar 2025 00:00:00 +0530 Thu, 23 Jul 2026 20:51:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470341 Provision for leave encashment determined through actuarial valuation may be treated as application of income for charitable purposes when computing exemption under section 11. For an entity following the accrual system, a separately funded provision representing a genuine and ascertained employee-benefit liability at year-end is a crystallised outgoing. Income available for charitable application is computed on commercial principles, allowing deduction of an honestly determined provision even where payment has not occurred during the relevant year. The provision is therefore eligible as application of income for charitable purposes. Case-Laws Income Tax Wed, 19 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470341