Benefit of income tax against the payment of gratuity
This query is : Resolved
19 December 2014
Dear Sir,
Suppose that if any company paying the gratuity but they have not done the acturial valuation and they have not created the trust with LIC or some other notified authority but making the payment to the employees who have completed 5 years or more when they leave the job.
Sir, my query is do that company get the income tax benefit of the payment in the same financial year or there is some process to get the exemption.
The calculation of the gratuity is being done as follows:
Last basic *15/26* no of years ( completed as on last March 31)
Please advice the same. I would be thankful to you.
Suppose that if any company paying the gratuity but they have not done the acturial valuation and they have not created the trust with LIC or some other notified authority but making the payment to the employees who have completed 5 years or more when they leave the job.
Sir, my query is do that company get the income tax benefit of the payment in the same financial year or there is some process to get the exemption.
The calculation of the gratuity is being done as follows:
Last basic *15/26* no of years ( completed as on last March 31)
Please advice the same. I would be thankful to you.
CA Kumar Mukesh
(Expert)
20 December 2014
Yes as per section 43B i.e. equal to the amount paid on before the due date of filling return of income, irrespective of amount and whether or not provision made in the books of account
Yes as per section 43B i.e. equal to the amount paid on before the due date of filling return of income, irrespective of amount and whether or not provision made in the books of account
20 December 2014
Hello Sir,
Thank you!! Yes as per the section we can have the amount allowed if we make the payment but my question is different. The assessee is not registered with Gratuity act 1972 and also there is no valuation method in the company. The trust has not been created and not informed to Income tax india which means there is no intimation have been sent to revenue. In this circumstances does assessee can get the exemption of the amount.
Please suggest me the same.
Thank you!! Yes as per the section we can have the amount allowed if we make the payment but my question is different. The assessee is not registered with Gratuity act 1972 and also there is no valuation method in the company. The trust has not been created and not informed to Income tax india which means there is no intimation have been sent to revenue. In this circumstances does assessee can get the exemption of the amount.
Please suggest me the same.
CA Kumar Mukesh
(Expert)
20 December 2014
For claiming deduction under section 43B, neither required to be registered under Gratuity Act nor to be informed to Income tax Department.
what is important payment should be made on before the date of filling of return of income
what is important payment should be made on before the date of filling of return of income
CA Kumar Mukesh
(Expert)
20 December 2014
Thanks should be thank user so that my score board can increase
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- EPF ECR NEW RULES Sep 17th 2026
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
