Dear All, Please help or elaborate on Compulsory Gratuity Insurance | Karnataka Rules 2024
From India, Mumbai
From India, Mumbai
Hi, Please refer the following link : https://www.citehr.com/644816-karnataka-compulsory-gratuity-insurance-rules-2024-a.html
From India, Madras
956From India, Madras
Hi Pradnyakar,
There is no specific information available about a "Compulsory Gratuity Insurance" and any related rules specifically in Karnataka or any other Indian state. Please note that laws and regulations are subject to change,.
Gratuity is a statutory benefit provided to employees in India under the Payment of Gratuity Act, 1972. It is a lump sum payment made by the employer to the employee as a token of appreciation for the services rendered by the employee during the period of employment. However, as of my last update, there wasn't any specific rule related to "Compulsory Gratuity Insurance" in Karnataka or at the national level.
If there have been new developments or changes in regulations after January 2022, I recommend checking with official government sources, such as the Ministry of Labour and Employment or the Karnataka State Labour Department, for the latest and most accurate information. Legal professionals or experts in employment laws in India may also provide assistance in understanding any recent changes in rules related to gratuity or insurance.
Thanks
From India, Bangalore
There is no specific information available about a "Compulsory Gratuity Insurance" and any related rules specifically in Karnataka or any other Indian state. Please note that laws and regulations are subject to change,.
Gratuity is a statutory benefit provided to employees in India under the Payment of Gratuity Act, 1972. It is a lump sum payment made by the employer to the employee as a token of appreciation for the services rendered by the employee during the period of employment. However, as of my last update, there wasn't any specific rule related to "Compulsory Gratuity Insurance" in Karnataka or at the national level.
If there have been new developments or changes in regulations after January 2022, I recommend checking with official government sources, such as the Ministry of Labour and Employment or the Karnataka State Labour Department, for the latest and most accurate information. Legal professionals or experts in employment laws in India may also provide assistance in understanding any recent changes in rules related to gratuity or insurance.
Thanks
From India, Bangalore
Our Firm Gratuity Trust Fund Consultant is an MSME Registered with Ministry of Micro, Small and Medium Enterprise with Registration Number UDYAM-DL-11-0013795. Our Consulting Firm is headed by Mr. Tikaram Chaudhary, he has almost 15 years of experience and specialization in providing Consultation for Actuarial, Legal, Insurance and Investment matters related to Old and New Gratuity Trusts as per various provisions of Accounting Standards (i.e. IndAS19, AS 15 (Revised 2005), IAS 19 (Revised 2011) & USGAAP ASC 715) Indian Trust Act 1882, The Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973, Income Tax Act 1961, Income Tax Rules, 1962, Fourth Schedule of Income Tax Act, 1961 & relevant Acts/Rules.
Generally, Gratuity Trusts are formed by the most reputed Indian & Multinational Companies as per provisions of in terms of Part C of Fourth Schedule of Income Tax Act, 1961 in irrevocable System for compliance of Section 4A of the Payment of Gratuity Act, 1972 and getting the Tax Benefits available under Section 36 (i) (v) and 10 (25) (iv) of Income Tax Act,1961.
Gratuity Trust Fund Consultant is a Leading Corporate Consulting Firm served more than 1000 Most Reputed Indian & Multinational Companies with Actuarial Valuation, Legal, Gratuity Insurance and Gratuity Trust Investment Solutions for Employee Benefit (i.e., Gratuity, Leave Encashment, Pension, PRMB etc.).
GTFC is actively involved in providing End to End Consultation for effectively implementing Accounting, Actuarial and Legal compliances of the Payment of Gratuity Act,1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable on Indian & Multinational Establishments. The details of Actuarial, Legal, Insurance and Investment Compliances related to Gratuity Benefits and other Defined Benefits are as under: -
1. Gratuity Trust Solutions
The Payment of Gratuity Act, 1972 is applicable to all establishments (i.e. MNC’s, Schools, Hospitals, NGO’s, Trust’s and other business entities) having more than 10 employees in past 12 months before Balance Sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e. Refer Section 9 in the Payment of Gratuity Act, 1972) are imposed on Establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the Provisions of the Payment of Gratuity Act, 1972: -
a. Registration of Establishment (i.e., Submission of Form A – Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rule 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance – Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian Companies registered with DLC Offices in jurisdiction of Karnataka, Telangana and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
a. SBI Life Insurance Company Limited
b. Life Insurance Corporation of India
c. Pramerica Life Insurance Limited
d. Bajaj Allianz Life Insurance Co. Ltd
e. ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires Establishment to Involve in following process: -
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of Income Tax Act, 1961 for getting the tax benefits under Section under Section 36 (i) (v) and 10 (25) (iv) of Income Tax Act,1961 even after the following changes: -
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in Event of Merger or De-merger
h. All matter related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions etc.
For more details contact me at 9211637063.
From India, Delhi
Generally, Gratuity Trusts are formed by the most reputed Indian & Multinational Companies as per provisions of in terms of Part C of Fourth Schedule of Income Tax Act, 1961 in irrevocable System for compliance of Section 4A of the Payment of Gratuity Act, 1972 and getting the Tax Benefits available under Section 36 (i) (v) and 10 (25) (iv) of Income Tax Act,1961.
Gratuity Trust Fund Consultant is a Leading Corporate Consulting Firm served more than 1000 Most Reputed Indian & Multinational Companies with Actuarial Valuation, Legal, Gratuity Insurance and Gratuity Trust Investment Solutions for Employee Benefit (i.e., Gratuity, Leave Encashment, Pension, PRMB etc.).
GTFC is actively involved in providing End to End Consultation for effectively implementing Accounting, Actuarial and Legal compliances of the Payment of Gratuity Act,1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable on Indian & Multinational Establishments. The details of Actuarial, Legal, Insurance and Investment Compliances related to Gratuity Benefits and other Defined Benefits are as under: -
1. Gratuity Trust Solutions
The Payment of Gratuity Act, 1972 is applicable to all establishments (i.e. MNC’s, Schools, Hospitals, NGO’s, Trust’s and other business entities) having more than 10 employees in past 12 months before Balance Sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e. Refer Section 9 in the Payment of Gratuity Act, 1972) are imposed on Establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the Provisions of the Payment of Gratuity Act, 1972: -
a. Registration of Establishment (i.e., Submission of Form A – Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rule 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance – Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian Companies registered with DLC Offices in jurisdiction of Karnataka, Telangana and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
a. SBI Life Insurance Company Limited
b. Life Insurance Corporation of India
c. Pramerica Life Insurance Limited
d. Bajaj Allianz Life Insurance Co. Ltd
e. ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires Establishment to Involve in following process: -
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of Income Tax Act, 1961 for getting the tax benefits under Section under Section 36 (i) (v) and 10 (25) (iv) of Income Tax Act,1961 even after the following changes: -
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in Event of Merger or De-merger
h. All matter related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions etc.
For more details contact me at 9211637063.
From India, Delhi
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AP Compulsory Gratuity Insurance Rule 2011- Notification.pd f