what are the benefits to employer when gratuity is paid to his employee
urvi jitendra bhavsar (CA Final Student) (116 Points)
20 May 2010what are the benefits to employer when gratuity is paid to his employee
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 20 May 2010
The gratuity is paid fort he benefit of the employee.However if the employers contribute to the approved gratuity fund for the benefits of the employee, he can claim deduction u/s 36 and the gratuity received by the employee is exempt from tax ,calculated according to the provisions of section 10(10).
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