Section 40A(7) vs Section 43B

I have disallowed provision for Gratuity towards unapproved fund under section 40A(7). Suppose next year the employee retires & actual payment is made to him, under which section the actual payment will be allowed?

Replies (2)
Quick Summary
This discussion clarifies the tax treatment of gratuity provisions and actual payments. While provisions for unapproved gratuity funds are disallowed under Section 40A(7), the actual payment made upon employee retirement can be claimed as a deduction. The deduction for the actual payment is typically claimed under Section 37, often as 'any other allowance' in the Income Tax Return, as there isn't a specific field for Section 40A(7) allowance.

Under sec 37.. in ITR deduction to be claimed under "any other allowance" as only disallowance can be claimed under 40A(7).. there is no field in ITR for claiming allowance under Sec 40A(7)

I totally agree with what you have said!! upmusics

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details