Unapproved gratuity fund
This query is : Resolved
15 December 2014
Any contribution made to an unapproved gratuity fund is not allowable as a deduction as per section 40A(7). Therefore request your help in determining as to when the contribution made by the employer can be allowed as a deduction under the provisions of the Income-tax Act, 1961 and under which section. Can it be allowed at the time when the unapproved fund makes the actual payment of gratuity to employees. Thanks for your help in advance.
15 December 2014
It is allowed when the unapproved fund on behalf of the company makes actual gratuity payment to employees.
15 December 2014
Thanks Seetharaman for your reply. Request you if you could provide some justification for the same i.e. section under which it is allowed, any case law in support of it
15 December 2014
Exemption of gratuity under sec.10 (10).
15 December 2014
section 10(10) is exemption of gratuity recd by the employee...my query for deduction is from the perspective of the employer...
15 December 2014
section 10(10) is exemption of gratuity recd by the employee...my query for deduction is from the perspective of the employer...
16 December 2014
Please refer Section 40, 40A, 43B IT Act.
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