Andhra pradesh compulsory gratuity insurance rules, 2011

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

The copy of the notification is an abstract.

Only Abstract was published on that particular date.

The question is are they enforced?

Are they been published in the official gazette of Andhra Pradesh?

Dear Sir,

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.

Regards,

PBS KUMAR

pls find AP GAZETTE

Dear Experts,

I did'nt get a actual answer for my above said quarry sofar.

Regards,

PBS KUMAR

Dear Mr. PBS Kumar,

It is enforced and also published in the gazette

Regards

Srinivas

8297399898

Dear Mr. PBS Kumar

To reply to your query, gratuity is statutory obligation, tax benefit comes afterwards

Provisions are not allowed for tax benefit

Only funding through trust or actual settlement is allowed for tax exemption subjected to limits as set in IT Rules

Incase if you opt an insurance till the liability of future service, it may work as additional protection for your employees and will also save corporate tax