I have 10 years of working experience in the matters of Employee Benefit Actuarial Valuations (i.e. Gratuity Valuation, Leave Encashment etc ) required by the Indian and Multinational companies to comply with the Accounting Requirements of Accounting Standard 15 ( Revised 2005), Ind AS 19 & IAS 19 (Revised 2011) IFRS.
In my past 10 years experience I have observed that companies make the provision of Gratuity in their Financial Statements such Balance Sheet/ Profit Loss and the provisions made in this statement reduces their profitability at large extent but Gratuity provision is not allowed as deductions whilst calculating the net income for computation of Income Tax. Also when Gratuity benefits are paid in future, it consumes large chunk of Business Capital.
The Gratuity Benefits are in defined benefit nature and increases with change in the past service, wages and any amendment in the Gratuity Act 1972 (As amended till date) so it becomes mandatory for companies to establish An Approved trust in terms of Part C of the Forth Schedule to the Income Tax Act, 1961. The *Initial contributions & Annual Contributions (*For more details Refer Rule 103 & 104 of Income Tax Rules 1962) by company are allowed as deduction under Section 36 (V) of the Income Tax Act 1961. Interest Income of the Gratuity Fund is not liable to Income Tax in Terms of Section 10 (25) (iv).
By establishing an approved Gratuity Fund Trust companies not only get the above Tax benefits but they discharge their Gratuity liability on annual basis by contributing it to the Approved Gratuity Trust, also as and when a large number of employee leaves the company in future, the payment of the Gratuity made by the Gratuity Fund and companies remains protected from such a huge Financial Risk.
The establishment of Gratuity Trust requires in-depth knowledge of various rules/regulations and expertise. I have a team-leading Professionals, Litigation Partners, Chartered Accountants, Company Secretaries & Heads of Insurance Companies having decades of experience in providing their services to our clients spread in all sectors of the Indian Economy, in the Public & Private Sectors which covers areas of Manufacturing, Software, Technology, Electricity, Electronics, Call Centers, Banks, Educational Institutes, Schools, Universities, Hotels, Hospitals, Hospitality Companies, etc. etc.
I offer paid online/offline consultation for the following services:-
1. Consultation for Formation Gratuity Trust,
2. Consultation for preparation of Inputs for Employee Benefit Valuations,
3. Consultation for Retirement Investment in Immediate/deferred Annuity Schemes, Consultation for Employee Retention Schemes,
4. Consultation for Employer-Employee and Key-Man Insurance Scheme, Consultation for Group Health, Accidental, Term, Fire- Retail/Corporate, Marin - Cargo, Marine - Hull Insurances of Companies
Gratuity Fund Trust Consultant (Experienced Consultant with 10 years of exposure in assessment/valuations of Employees Benefit Liabilities specially Gratuity/Leave Encashment Liabilities & Long Service Award Schemes)
Mobile Number: 9211637063
Email ID - tikaramchaudhary @ gmail.com, gratuityconsultant @ gmail.com
Linkedin Profile: https://www.linkedin.com/in/tikaram-chaudhary-a5727848
(All Consultancy Services provided by us are subject to terms & conditions will be stated when a consultation job is accepted.)