If a company decides to pay a higher amount as gratuity and puts the fact in a trust deed, will the IT dept approve the deed?

As per Gratuity Act, 1972 the maximum amount payable is INR 20 lakhs. If a company decides to pay a higher amount as gratuity and puts the fact in the trust-deed, will IT dept approve the deed?
2nd April 2024 From India, Bengaluru

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vmlakshminarayanan

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Hi, Gratuity as per payment of Gratuity Act , the maximum payment ceiling is Twenty Lakhs which will be tax free. Any amount paid over and above Twenty Lakhs will be subjected to Income Tax.
2nd April 2024 From India, Madras

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