A company makes a payment of gratuity to its employee which is not approved whether the company will be allowed as expense as per income tax act.(company does not make any contribution it only makes provision for gratuity).
if yes, then whats the main diff betn approved and unapproved gratuity considering employer.
Dear Aditya,
Approved Funds means fund which are approved by commissioner of CBDT in its official gazatte
However, any provision for grat is disallowed u/s 40A(7).
But however, if the grat is paid (actual payment) to an an approved fund it will alllowed as a deduction
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