Secunderabad/Highcourt practice watsapp no.9989324294
The Government of Andhra Pradesh notified the Rules under Section 4-A effective 4 March 2011, thereby making it mandatory for employers in the private sector in Andhra Pradesh to obtain a gratuity insurance from LIC or any other insurance company, unless the employer:
has already established a gratuity fund approved under the Income Tax Act, 1961 (Approved Gratuity Fund) and desires to continue such arrangement; or
employs 500 or more employees and establishes an Approved Gratuity Fund.
The Rules essentially reiterates the provisions of Section 4-A and requires the employer of an establishment covered by the Act to (i) get the establishment registered within 30 days from the date of the notification; and (ii) furnish details of the employees insured to the controlling authority at the time of registration of the establishment and thereafter notify the authority whenever there is a change in such details
It was main benefitiatiry is employer to get the Tax exemption. If the employee is died during the employment he will get the actual Gratuity plus compensation from LIC. Is it correct please alloborate.