Dear All,
Can somebody tell me about the latest notification by A.P Govt. regarding the compulsory gratuity insurance.
Also can yo please tell me if there is any deadline for registering for the insurance.
Thanks & Regards
Archana.B
From India, Bangalore
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Can somebody tell me about the latest notification by A.P Govt. regarding the compulsory gratuity insurance.
Also can yo please tell me if there is any deadline for registering for the insurance.
Thanks & Regards
Archana.B
From India, Bangalore
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Dear Archana,
Kindly go through the notification.
According to me the cut off date is 30 days which means that within 30 days of issuance of notification, the establishment shall get itself registered with the Controlling Authority.
Regards,
Vinay
From India, Delhi
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1Kindly go through the notification.
According to me the cut off date is 30 days which means that within 30 days of issuance of notification, the establishment shall get itself registered with the Controlling Authority.
Regards,
Vinay
From India, Delhi
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dear all please find attached ap gazette on compulsory gratuity insurance rules
From India, Hyderabad
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From India, Hyderabad
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Hi, Does AP compulsary gratuity insurance rules apply to Telangana?
From India, Hyderabad
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From India, Hyderabad
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Online Consulting Services are available for Company Directors, CFOs, Vice Presidents of Indian and multinational Companies with the Principal Place of Business in Karnataka for all your queries related to the Implementation of Karnataka Compulsory Gratuity Insurance Rules, 2024, notified on 10.01.2024.
The time left for implementation is now 42 days, and you are still not able to find out the answers to burning questions such as:
1. What are the preliminary documents to implement the KCGIR, 2024?
2. Why do I need to implement the KCGIR, 2024?
3. How to implement the KCGIR, 2024 before the stipulated timeline?
4. Where do I approach for guidance to implement the KCGIR, 2024?
5. Who will get penalized if KCGIR, 2024 is not implemented on time?
Get paid consultation from a 15-year experienced expert in Actuarial, Accounting, and Legal Issues in this subject. Book your time slot for a Zoom, Team, or Google Meet Call for INR 8000 plus GST for 30 minutes and INR 12000 plus GST for 1-hour consultation. Connect with us at 9211637063 & 9818322186 or email us your requirements for an online meeting at tikaramchaudhary@gratuitytrustfund.com
From India, New Delhi
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The time left for implementation is now 42 days, and you are still not able to find out the answers to burning questions such as:
1. What are the preliminary documents to implement the KCGIR, 2024?
2. Why do I need to implement the KCGIR, 2024?
3. How to implement the KCGIR, 2024 before the stipulated timeline?
4. Where do I approach for guidance to implement the KCGIR, 2024?
5. Who will get penalized if KCGIR, 2024 is not implemented on time?
Get paid consultation from a 15-year experienced expert in Actuarial, Accounting, and Legal Issues in this subject. Book your time slot for a Zoom, Team, or Google Meet Call for INR 8000 plus GST for 30 minutes and INR 12000 plus GST for 1-hour consultation. Connect with us at 9211637063 & 9818322186 or email us your requirements for an online meeting at tikaramchaudhary@gratuitytrustfund.com
From India, New Delhi
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Our Firm Gratuity Trust Fund Consultant is an MSME registered with the Ministry of Micro, Small, and Medium Enterprise with Registration Number UDYAM-DL-11-0013795. Our Consulting Firm is headed by Mr. Tikaram Chaudhary; he has almost 15 years of experience and specialization in providing Consultation for Actuarial, Legal, Insurance, and Investment matters related to Old and New Gratuity Trusts as per various provisions of Accounting Standards (i.e., IndAS19, AS 15 (Revised 2005), IAS 19 (Revised 2011) & USGAAP ASC 715) Indian Trust Act 1882, The Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973, Income Tax Act 1961, Income Tax Rules, 1962, Fourth Schedule of Income Tax Act, 1961 & relevant Acts/Rules.
Generally, Gratuity Trusts are formed by the most reputed Indian & Multinational Companies as per provisions of in terms of Part C of Fourth Schedule of Income Tax Act, 1961 in irrevocable System for compliance of Section 4A of the Payment of Gratuity Act, 1972, and getting the Tax Benefits available under Section 36 (i) (v) and 10 (25) (iv) of the Income Tax Act, 1961.
Gratuity Trust Fund Consultant is a Leading Corporate Consulting Firm served more than 1000 Most Reputed Indian & Multinational Companies with Actuarial Valuation, Legal, Gratuity Insurance, and Gratuity Trust Investment Solutions for Employee Benefit (i.e., Gratuity, Leave Encashment, Pension, PRMB, etc.).
GTFC is actively involved in providing End to End Consultation for effectively implementing Accounting, Actuarial, and Legal compliances of the Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable on Indian & Multinational Establishments. The details of Actuarial, Legal, Insurance, and Investment Compliances related to Gratuity Benefits and other Defined Benefits are as under:
1. Gratuity Trust Solutions
The Payment of Gratuity Act, 1972, is applicable to all establishments (i.e. MNC's, Schools, Hospitals, NGO's, Trusts, and other business entities) having more than 10 employees in the past 12 months before the Balance Sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e., Refer to Section 9 in the Payment of Gratuity Act, 1972) are imposed on Establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the Provisions of the Payment of Gratuity Act, 1972:
a. Registration of Establishment (i.e., Submission of Form A – Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rules 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance – Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian Companies registered with DLC Offices in the jurisdiction of Karnataka, Telangana, and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
- SBI Life Insurance Company Limited
- Life Insurance Corporation of India
- Pramerica Life Insurance Limited
- Bajaj Allianz Life Insurance Co. Ltd
- ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires Establishment to Involve in the following process:
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of Income Tax Act, 1961 for getting the tax benefits under Section under Section 36 (i) (v) and 10 (25) (iv) of the Income Tax Act,1961 even after the following changes:
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in Event of Merger or De-merger
h. All matters related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution, and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions, etc.
For more details contact me at 9211637063.
From India, Delhi
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Generally, Gratuity Trusts are formed by the most reputed Indian & Multinational Companies as per provisions of in terms of Part C of Fourth Schedule of Income Tax Act, 1961 in irrevocable System for compliance of Section 4A of the Payment of Gratuity Act, 1972, and getting the Tax Benefits available under Section 36 (i) (v) and 10 (25) (iv) of the Income Tax Act, 1961.
Gratuity Trust Fund Consultant is a Leading Corporate Consulting Firm served more than 1000 Most Reputed Indian & Multinational Companies with Actuarial Valuation, Legal, Gratuity Insurance, and Gratuity Trust Investment Solutions for Employee Benefit (i.e., Gratuity, Leave Encashment, Pension, PRMB, etc.).
GTFC is actively involved in providing End to End Consultation for effectively implementing Accounting, Actuarial, and Legal compliances of the Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable on Indian & Multinational Establishments. The details of Actuarial, Legal, Insurance, and Investment Compliances related to Gratuity Benefits and other Defined Benefits are as under:
1. Gratuity Trust Solutions
The Payment of Gratuity Act, 1972, is applicable to all establishments (i.e. MNC's, Schools, Hospitals, NGO's, Trusts, and other business entities) having more than 10 employees in the past 12 months before the Balance Sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e., Refer to Section 9 in the Payment of Gratuity Act, 1972) are imposed on Establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the Provisions of the Payment of Gratuity Act, 1972:
a. Registration of Establishment (i.e., Submission of Form A – Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rules 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance – Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian Companies registered with DLC Offices in the jurisdiction of Karnataka, Telangana, and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
- SBI Life Insurance Company Limited
- Life Insurance Corporation of India
- Pramerica Life Insurance Limited
- Bajaj Allianz Life Insurance Co. Ltd
- ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires Establishment to Involve in the following process:
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of Income Tax Act, 1961 for getting the tax benefits under Section under Section 36 (i) (v) and 10 (25) (iv) of the Income Tax Act,1961 even after the following changes:
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in Event of Merger or De-merger
h. All matters related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution, and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions, etc.
For more details contact me at 9211637063.
From India, Delhi
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What is Compulsory Gratuity Insurance, how is it different from other insurances, and why do companies procure it before the closure of each financial year?
In this post, I will try to elaborate on Compulsory Gratuity Insurance:
Gratuity benefits are governed by the Payment of Gratuity Act, 1972. Section 4A of the Payment of Gratuity Act, 1972 regulates the provisions of Compulsory Gratuity Insurance, and the power of notification of this section lies with State Governments and the Central Government. After the enactment of the Payment of Gratuity Act, 1972, three states notified this section, and the details of the states and years of notifications are as follows:
1st State: Andhra Pradesh: In the year 2011
2nd State: Telangana: Year 2016
3rd State: Karnataka: Year 2024
All private establishments (i.e., private sector companies, private schools, private colleges, NGOs) in the above three states are required to:
1. Get an Actuarial Report for the assessment of Present Values of Gratuity Obligation and procure compulsory Gratuity Insurance under an Approved Gratuity Fund under the Irrevocable System,
2. Get their companies registered with the Deputy Labor Commissioner of their respective jurisdictions in prescribed forms (i.e., Form I, Form II, & Form III, etc.), and
3. Get approval from the Commissioner of Income Tax (CIT) in terms of Part C of the Fourth Schedule of the Income Tax Act, 1961.
It is unnotified in the rest of the states and UTs.
Due to taxation benefits available to establishments under Section 36(1)(v) of the Income Tax Act, 1961, which are not available when the company makes a provision for Gratuity Liability based on the Actuarial Report in the Balance Sheet under the "Pay as you go Option" (Refer Section 47A(7) of the Income Tax Act, 1961), companies in other states and UTs voluntarily opt for Compulsory Gratuity Insurance before the closure of the financial year.
A recent development regarding the implementation of Security Code 2020 by the Central Government before 31.03.2025 will make Compulsory Gratuity Insurance applicable to all establishments (i.e., private sector companies, private schools, private colleges, NGOs) in other states and UTs, because Section 57(1) of the Drafts of the Social Security Code 2020 has a similar provision as given in Section 4A of the Payment of Gratuity Act, 1972.
In case of any queries or requirements for consultation on the above matter, you may send an email to info@gratuitytrustfund.com or contact us at 011-45261651, 9211637063.
From India, Delhi
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In this post, I will try to elaborate on Compulsory Gratuity Insurance:
Gratuity benefits are governed by the Payment of Gratuity Act, 1972. Section 4A of the Payment of Gratuity Act, 1972 regulates the provisions of Compulsory Gratuity Insurance, and the power of notification of this section lies with State Governments and the Central Government. After the enactment of the Payment of Gratuity Act, 1972, three states notified this section, and the details of the states and years of notifications are as follows:
1st State: Andhra Pradesh: In the year 2011
2nd State: Telangana: Year 2016
3rd State: Karnataka: Year 2024
All private establishments (i.e., private sector companies, private schools, private colleges, NGOs) in the above three states are required to:
1. Get an Actuarial Report for the assessment of Present Values of Gratuity Obligation and procure compulsory Gratuity Insurance under an Approved Gratuity Fund under the Irrevocable System,
2. Get their companies registered with the Deputy Labor Commissioner of their respective jurisdictions in prescribed forms (i.e., Form I, Form II, & Form III, etc.), and
3. Get approval from the Commissioner of Income Tax (CIT) in terms of Part C of the Fourth Schedule of the Income Tax Act, 1961.
It is unnotified in the rest of the states and UTs.
Due to taxation benefits available to establishments under Section 36(1)(v) of the Income Tax Act, 1961, which are not available when the company makes a provision for Gratuity Liability based on the Actuarial Report in the Balance Sheet under the "Pay as you go Option" (Refer Section 47A(7) of the Income Tax Act, 1961), companies in other states and UTs voluntarily opt for Compulsory Gratuity Insurance before the closure of the financial year.
A recent development regarding the implementation of Security Code 2020 by the Central Government before 31.03.2025 will make Compulsory Gratuity Insurance applicable to all establishments (i.e., private sector companies, private schools, private colleges, NGOs) in other states and UTs, because Section 57(1) of the Drafts of the Social Security Code 2020 has a similar provision as given in Section 4A of the Payment of Gratuity Act, 1972.
In case of any queries or requirements for consultation on the above matter, you may send an email to info@gratuitytrustfund.com or contact us at 011-45261651, 9211637063.
From India, Delhi
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AP Compulsory Gratuity Insurance Rule 2011- Notification.pd f