If provision for gratuity expense is lower than that of provision made in the previous year,what entry I have to make. Whether such an item is need to be treated as Income.Whether is to be deducted from the profit while computing Income tax
Salman PS (STUDENT) (72 Points)
26 April 2016If provision for gratuity expense is lower than that of provision made in the previous year,what entry I have to make. Whether such an item is need to be treated as Income.Whether is to be deducted from the profit while computing Income tax
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 27 April 2016
Salman
You query is not clear. please try to clear it
Grautity will be allowed as deduction only on payment basis. Hence provision of gratuity will not effect your profit as per IT act.
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