Provision for gratuity is generally not allowable as a deduction except in the following cases :-<br /><br />Payment towards an approved gratuity fund - Subject to Sec. 43A<br />Contribution to unapproved gratuity fund is not allowed as a deduction<br />Provision for gratuity actually became payable during the relevant previous year<br /><br />Premium paid for policy taken from LIC for gratuity payments of employees, is allowed u/s 37(1).
