RE: Gratuity Trust Formation

[sachin kumar]

Dear Friends 

Can Any one provide me the Procedure and Documentation for Formation of Gratuity Trust and Registration thereof 

Thanks in Advance for your support

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CS Sachin Kumar

Mob:-9911124032

[Prashant Damani]

Dear Mr. Sachin,

Gratuity Trust needs approval (and in many cases prior approval) of the Insurance Company, for example LIC, which will issue policy to cover the employees.

Please try to get one format of the TRUST DEED and TRUST RULES from LIC (they usually have one prescribed draft format). Give full details of employees to be covered. LIC will then give its proposal for coverage amount and premium payable thereon. They also provide the documentation required for the same. With this, get the TRUST DEED AND TRUST RULES finalized and signed and make proposal to LIC for issue of GRATUITY POLICY.

Then you will be required to get the Trust registered with Income Tax Authorities for exemption.

This is a step by step procedure.

Regards,

CS PRASHANT DAMANI

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[sachin kumar]

Thanks Prashant ji 

for your help actually i am confuse that whether i have to registered with the Income tax authority first or take the Policy from LIC 

[Prashant Damani]

IT exemption will be given by the department on the basis of trudt deed and the object with which the same is formed. LIC is the authority who is concerned more abt the contents of the deed. Hence obtsining policy from lic is first stage. Even IT dept will also demand policy copy for granting exemption.

[santhosh kumar]

yes you need to write a letter to IT department with covering letter.

also there approval is required if there is any subsequent changes.

regards

CS.M.Santhoshkumar
"From the man who always has a Good heart ! "