Gratuity v/s Approved fund, Income Tax

[Naveen gawri]

Are We required to open Gratuity fund & Get it approved from CIT incase we have taken insurance against gratuity liability from LIC. ?

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[CA GOPALJI AGRAWAL]

The contribution towards LIC gratuity fund by the employer is eligible for deduction as very well laid down in the judgement of the apex court in the case of Commissioner of Income Tax, Coimbatore Versus M/s Textool Co. Ltd. 2009 -TMI - 35070 - SUPREME COURT.