Please let me know if Gratuity fund/trust can be formed in company only.
Can we skip putting gratuity in LIC?
How company will be benefitted in terms of saving tax?
Looking forward to your valuable input.
From India, Calcutta
Can we skip putting gratuity in LIC?
How company will be benefitted in terms of saving tax?
Looking forward to your valuable input.
From India, Calcutta
Experts of the relevant section of the Act is given below
Payment of Gratuity Act, 1972
Section: 4A
Compulsory insurance
(1) With effect from such date as may be notified by the appropriate
Government in this behalf, every employer, other than an employer or an
establishment belonging to, or under the control of, the Central Government
or a State Government, shall, subject to the provisions of sub-section (2),
obtain an insurance in the manner prescribed, for his liability for payment
towards the gratuity under this Act, from the Life Insurance Corporation of
India established under the Life Insurance Corporation of India Act, 1956 (31
of 1956) or any other prescribed insurer:
Provided that different dates may be appointed for different establishments
or class of establishments or for different areas.
(2) The appropriate Government may, subject to such conditions as may be
prescribed, exempt every employer who had already established an approved
gratuity fund in respect of his employees and who desires to continue such
arrangement and every employer employing five hundred or more persons
who establishes an approved gratuity fund in the manner prescribed from the
provisions of sub-section (1).
(3) For the purpose of effectively implementing the provisions of this
section, every employer shall within such time as may be prescribed get his
establishment registered with the controlling authority in the prescribed
manner and no employer shall be registered under the provisions of this
section unless he has taken an insurance referred to in sub-section (1) or has
established an approved gratuity fund referred to in sub-section (2)
From India, Madras
294Payment of Gratuity Act, 1972
Section: 4A
Compulsory insurance
(1) With effect from such date as may be notified by the appropriate
Government in this behalf, every employer, other than an employer or an
establishment belonging to, or under the control of, the Central Government
or a State Government, shall, subject to the provisions of sub-section (2),
obtain an insurance in the manner prescribed, for his liability for payment
towards the gratuity under this Act, from the Life Insurance Corporation of
India established under the Life Insurance Corporation of India Act, 1956 (31
of 1956) or any other prescribed insurer:
Provided that different dates may be appointed for different establishments
or class of establishments or for different areas.
(2) The appropriate Government may, subject to such conditions as may be
prescribed, exempt every employer who had already established an approved
gratuity fund in respect of his employees and who desires to continue such
arrangement and every employer employing five hundred or more persons
who establishes an approved gratuity fund in the manner prescribed from the
provisions of sub-section (1).
(3) For the purpose of effectively implementing the provisions of this
section, every employer shall within such time as may be prescribed get his
establishment registered with the controlling authority in the prescribed
manner and no employer shall be registered under the provisions of this
section unless he has taken an insurance referred to in sub-section (1) or has
established an approved gratuity fund referred to in sub-section (2)
From India, Madras
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