Gratuity Trust Services

Gratuity is not just a statutory requirement. It’s a long-term financial commitment.

As employee tenure increases, gratuity liability builds quietly in the background. When exits happen, the payout often hits cash flows without warning. A Gratuity Trust brings structure, predictability, and tax efficiency to this obligation.

At N D Savla & Associates, we help employers design, register, and manage Gratuity Trusts that work in practice, not just on paper.

What Is a Gratuity Trust?

A Gratuity Trust is an irrevocable trust created by an employer to meet future gratuity obligations of employees. Once approved under the Income Tax Act, employer contributions to the trust are tax-deductible, and gratuity payouts are made from a dedicated fund.

What this really means is control. You plan today instead of reacting later.

Our Gratuity Trust Services

We handle the complete lifecycle, from planning to ongoing support.

Gratuity Trust Structuring

• Evaluation of existing gratuity liability

• Advice on suitability of a trust-based structure

• Contribution planning aligned with business cash flows

Gratuity Trust Registration & Income Tax Approval

• Drafting of Gratuity Trust Deed

• Coordination with certified actuary for valuation

• Application filing with the Income Tax Department

• Follow-ups and query handling until approval

Actuarial Valuation Support

• Annual gratuity liability valuation

• Support for accounting entries and disclosures

• Ongoing coordination with actuaries

Ongoing Compliance & Advisory

• Review of annual contributions

• Advisory during employee exits and gratuity payouts

• Compliance support under tax and labour regulations

Who Should Consider a Gratuity Trust?

This service is suitable for:

• Companies with 10 or more employees

• Businesses with long-serving staff

• Growing organisations planning employee benefit structures

• Employers seeking tax efficiency and financial discipline

If gratuity payments feel unpredictable, it’s usually a sign that structuring is overdue.

Benefits of a Gratuity Trust

• Tax Efficiency
  Contributions to an approved Gratuity Trust are allowed as business expenses.

• Cash Flow Discipline
  Large gratuity payouts do not disrupt working capital.

• Employee Confidence
  Gratuity obligations are backed by a dedicated, protected fund.

• Compliance Clarity
  Reduced disputes and better documentation.

Why N D Savla & Associates ?

Gratuity Trusts involve tax law, labour law, accounting, and actuarial valuation. Problems arise when these are handled in isolation.

Clients choose us because:

• We take an end-to-end view

• We coordinate directly with actuaries and authorities

• We focus on implementation, not theory

• We remain involved even after approval

No gaps. No handovers.

Our Approach

1. Understand your employee structure and gratuity exposure

2. Assess whether a Gratuity Trust makes sense at this stage

3. Design and register the trust

4. Obtain Income Tax approval

5. Provide ongoing advisory and compliance support

Simple steps. Clear accountability.

Speak to Us

If gratuity liabilities are growing or payouts are affecting cash flow, a Gratuity Trust is worth serious consideration.

Connect with N D Savla & Associates to discuss Gratuity Trust services and next steps.