Tag: Gratuity taxation

Issues to consider for funding a gratuity scheme

5 issues to consider for funding a gratuity scheme

29 Oct 2025Under the right circumstances, a decision for funding a gratuity scheme could deliver significant benefits to the companies. Gratuity is a statutory benefit – employers are required to pay a lumpsum benefit to their employees who have served for at least five years. The lumpsum is generally calculated as 15 days of eligible salary for […]

tax on gratuity

Gratuity taxation – how it applies to your company

3 Jan 2018Almost all Indian companies (more than 10 employees) pay gratuity to their employees. Since, gratuity payments are an expense to the company, companies can claim tax-deduction on the same. You can read about Payment of Gratuity Act, 1972 here.