Gratuity, as is well known, is a statutory liability of the employer. Also, since Gratuity is calculated on the basis of the last salary drawn, the liability of an employer increases rapidly as years pass on or as the salary of the employees increase. Organizations with sizeable Gratuity liability must have the Gratuity liability valued and funded separately. Dedicated Gratuity funding is one of the fundamental principles of sound corporate governance.
As a prudent financial practice, as well as for appropriate taxation planning and investment management, it is advisable for organizations to Form an Approved Gratuity Fund. Few Benefits for formation of Gratuity Trust are under:-
1. The Initial contributions & Annual Contributions into the Gratuity Trust by the company is allowed as a deduction under Section 36 (V) of the Income Tax Act 1961, whereas provision made against gratuity in balance sheet on annual basis is disallowed.
2. Interest Income of the Gratuity Fund is not liable to Income Tax in Terms of Section 10 (25) (iv).
3. Separate funding of the Gratuity liability ensures that the pay-out as regards Gratuity does not create any problem in the financial management of the company and does not affect the organization’s liquidity position in the future years.
We offer our Consulting Services for Establishment of an Approved Gratuity Fund and Advisory Services for Investment of Gratuity Fund either into Group Gratuity Schemes of Insurer or into Self- Managed Investment as per the guidelines of the Regulator. We have given our consultation to CFOs, Directors, Heads of HR, Finance and Tax Planning department of the Companies for Formation of an approved Gratuity Trust and its Investment. Our clientele is spread in all sectors of the Indian Economy, in the Public & Private Sectors which covers areas of Manufacturing, Software, Technology, Electricity, Electronics, Call Centers, Banks,
In case you need our consultancy services, then you may contact us at the following:-
Tikaram Chaudhary
Gratuity Trust Fund Consultant
(10 Years of Experience in Gratuity and Leave Encashment Valuations and Formation of Trust fund)
Office Address : R 11, F/F, R Block, Vikas Nagar, New Delhi -110059
Mobile Number : 9211637063
Email Id : gratuityconsultant @ gmail.com , tikaramchaudhary @ gmail.com
LinkedIn Profile : https://www.linkedin.com/in/tikaram-chaudhary-a5727848/
Caclubindia Profile: https://www.
Blog: https://gratuitytrustfundconsultant.blogspot.com
Website: https://gratuity-trust-fund-consultant-in-delhi-ncr.business.site/
(All Consultancy Services provided by us are subject to terms & conditions will be stated when a consultation job is accepted.)
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