Direct tax

you can claim Rs.60000/- and not Rs.40000/- as provision for gratuity is not allowed so whatever your net profit add Rs.40000/- and deduct Rs.60000/-

Thanks for the reply sir.

But at the time of accounting(entry), please confirm that whether the following entry is correct 

Provision Dr  40,000

P&L        Dr  20,000

Bank       Cr  60,000

If it is so, we have to add back Rs.20,000 only sir.

Please clarify