Provision for gratuity is generally not allowable as a deduction except in the following cases :-
Payment towards an approved gratuity fund - Subject to Sec. 43A Contribution to unapproved gratuity fund is not allowed as a deduction Provision for gratuity actually became payable during the relevant previous year
Premium paid for policy taken from LIC for gratuity payments of employees, is allowed u/s 37(1).
