Gratuity Trust Fund Consultant in Delhi NCR

Advisory and Support Services for Formation of Gratuity Trust, Approval of Gratuity Fund, Accounting of Gratuity Trust
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Actuarial Valuation Services In Delhi NCR

08-Sep-2019 – 09-Sep-2019

We offer Actuarial Valuation Services required by SME, Non SME, MNC, Pvt Ltd, Ltd, Public Sector, Schools, Colleges, Universities to comply with the requirement of Accounting Standards (i.e AS 15 - Revised 2005, IndAS 19 ,IAS 19 Revised 2005, Nepal Accounting Standard - NAS 19) for Accounting Pro...

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Tika Ram Chaudhary - Gratuity Trust Fund Consultant

Gratuity, as is well known, is a statutory liability of the employer. Also, since Gratuity is calculated on the basis of the last salary drawn, the liability of an employer increases rapidly as years pass on or as the salary of the employee's i...

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Get End to End Support Services for Formation of Gratuity Trust in Delhi NCR Region.

We offer end to end support services for the formation of gratuity trust. Our Services includes:-

1. Specialized Support Services for preparation of Inputs for Actuarial Certificate for Value of Obligation unde...

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Gratuity Trust Fund Consultant

As per guidelines of The Payment of Gratuity Act 1972 (Amended) gratuity is a statutory obligation on the shoulders of the employer to make the payment of Gratuity within 30 days to his employees as soon as it becomes payable. (Refer Sub Section (2) of Section 7 to the Act).   

Compliance of this act is applicable to all organizations such as a factory, mine, oilfield,   port, railways, plantation, shops, establishments or Educational institution having 10 or more employees on any day in the preceding 12.    

The amount of Gratuity payable to an employee on his exit from service, according to   “The Payment of Gratuity (Amendment) Act 2018 ”, in force at present, is:-        

(Wages of the employee at the time of exit) x (15/26) x (Number of Years of Service at the time of exit)

This is subject to a ceiling limit of 20,00,000/- effective from 29.03.2018. The Gratuity Ceiling Limit can be raised by the employer to give additional benefits to his employees.

Gratuity is payable to an employee on exit from service after he has rendered continuous service for not less than five years:

(a) On his superannuation
(b) On his resignation

(c) On his death or disablement due to injury or disease.

In the case of (c) vesting condition of 5 years does not apply.   

Gratuity Benefits depends upon last drawn monthly wages and is linked to the length of service, normally it goes on increasing from the time when the employee joins service and the time of his exit from service due to the annual increase in salary and increasing service period.      

For Example. 

If Mr. A at Age 48, joins the Company where retirement Age is 60 yrs. with a Basic Pay of Rs. 2,60,000/- per month and there is an annual increment of 10% in his wages, then Gratuity Payment after 5 years and on *retirement will be:-

On Completion of 1 Yr - (15/26)* 2,86,000*1 = 1,50,000/-

On Completion of 2 Yrs - (15/26)*3,14,600*2 = 3,63,000/-

On Completion of 3 Yrs - (15/26)*3,46,060*3 = 5,98,950/-

On Completion of 4 Yrs - (15/26)*3,80,670*4 = 8,78,460/-

On Completion of 5 Yrs - (15/26)*4,18,730*5 = 12,00,788/-

On Completion of 12 Yrs - (15/26)*8,15,991*12 = 56,49,198/-*

Due to regulatory requirement and Nature of Gratuity Liability which increase exponentially with the increase in wages of employee and service period of the employee. It becomes mandatory for companies to create a separate corpus for discharging the Gratuity Liability in future. In Indian context, Companies have 2 options for discharging the Gratuity Liability : - 

I. Pay as go options – In this option, the employer makes provision of Gratuity Liability by taking an Actuarial Valuation Report/ Certificate from An Actuarial Service provider in Compliance of AS 15 (Revised 2005) in their Financial Statement and whenever an employee leaves the organization, the employer pays him gratuity from his own resources.   

II. Funding Option – In this option, the Employer Forms an Irrevocable Trust and gets the approval from Income Tax Department and contribute funds into the Gratuity Trust annually and get tax benefits section 36 (1) (v) of the income tax act, 1961 and as and when an employee leaves the organization, gratuity amount paid by the gratuity trust.

We offer our Advisory and Support Services to organisation for :-

1. Gratuity Trust Formation.

2. Gratuity Trust Investment in Group Gratuity Schemes.      
(a)  Traditional Group Gratuity Schemes of LIC.

(b)  Unit Linked Gratuity Schemes of all Private Insurance Companies.   

3. Accounting/Audit of Gratuity Trust    
4. Legal Support Services for Gratuity Trust Formation.                   

5. Specialized Consulting Support Services for Registered Valuer's valuations:-                        

(a)  Actuarial Valuations under Gratuity & Leave Encashment plan - For compliance of AS 15(R)                                 

(b)  Plant and Machinery Valuations- For compliance of AS 10
(c)  Land and Building Valuations- For compliance of AS 10   
(d)  Securities or Financial Assets Valuations- For Compliance of Section 42 of Companies Act    
(e)  Merchant Banker Valuations - For Compliance of Section 42 & 62(i)(c) of Companies Act  

6. Gratuity & Leave Policy Restructuring as Employee Retention Policy.  
7Investment in Immediate & Deferred Annuities as retention benefit for highly productive employees or as a Retirement Benefit for CFO, Top Management Directors
8. Group, General, Health insurances such as Marine Insurances, EAR Insurance, Corporate Property, Fire Insurances, etc.
9. Investment in Indian and Overseas Properties (i.e. Dubai).
In case you or your clients have a requirement for the above serviced then you may contact me.     

Tikaram Chaudhary 
Gratuity Trust Fund Consultant 
Office Address: R 11, F/F, R Block, Vikas Nagar, New Delhi -110059
Mobile Number: 9211637063 

(All Consultancy Services provided by us are subject to terms & conditions will be stated when a consultation job is accepted.)       

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  • 092116 37063


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DELHI, Delhi 110059

Business Hours

Mon:11:00 AM – 6:00 PM
Tue:11:00 AM – 6:00 PM
Wed:11:00 AM – 6:00 PM
Thu:11:00 AM – 6:00 PM
Fri:11:00 AM – 6:00 PM
Sat:11:00 AM – 6:00 PM
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