Gratuity Act'1972

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Aranya Dey

Aranya Dey (Querist)
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24 October 2008 Could anybody tell me how the Gratuity Fund is created and what are the procedures to comply with?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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25 October 2008 Gratuity Fund is created by means of a trust deed created in accordance with the IT Rules in order that the approval of the same by IT authorities is obtained. The trust deed is also to be approved by the company's Board.

Aranya Dey

Aranya Dey (Querist)
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25 October 2008 Thanks Mr.Raghavan but I want to know something more i.e.what's the criteria of creation of this gratuity fund?What amt. is to be deposited to it?

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S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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30 October 2008 The criteria is to fund the liability. The funding is determined based on actuarial valuation.