DTA on gratuity provision

pushpa kumar (section officer) (39 Points)

11 February 2011  

Hi, 

A public limited company providing gratuity provision of say Rs.10 lac in Profit and loss account. 

But this was not allowed under income tax law as deduction as it is only a provision. 

Does the company need to make a DTA for this Rs.10 lacs. 

please clarify.