gratuity
Ketaki
(Querist) 13 January 2010
This query is : Resolved
Plz help me in knowing the procedure & formalities to start gratuity trust.Like all forms, approvals, LIC agreements, bank formalities. & procedure for transfering the gratuity of employees from 1 entity to other in case of transfering employees from 1 co. to other.
plz its very urgent
A V Vishal
(Expert) 13 January 2010
Set up an Income Tax recognized trust that can be administered internally (Self-administered Trust).
Have a scheme with LIC, where the company mandates LIC to manage and administer the gratuity benefit.
Opt for a scheme with a private insurance company, which will be responsible for managing the gratuity scheme.
To take advantage of the tax concession available to the company, on the contributions made into the Trust and it enable funding of gratuity liability.
