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regarding gratuity

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 May 2010 Dear sir/ madam

My Query relates to creating of Gratuity Trust.

1. A school assessed as AOP would like to create a provision for Gratuity calculated @15 days of salary for every 2 years of completion of service and claim the provision amount as deduction under IT Act 1961, is such provision allowable under Income Tax Act , 1961.

04 May 2010 no provision for gratuity is allowed as per income tax act, it is allowed on payment basis.



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