Gratuity an leave enchasment

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..... Dear Friends, Please suggest. A company is accounting for Provsion for Gratuity Leave Encashment for first time as per Acturial Valuation. Figure are like this: Obligations at period beginning 3,408,094 Service Cost 651,617 Interest on Defined benefit obligation 316,757 Benefits settled .....

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..... - Actuarial (gain)/loss 458,213 Present value of Obligation at the year en 48,34,681 Now how to account these in the books? i) Either whole amount is charged in PL Account and credited to Provision and disallowed whole amount in IT computation? OR ii) Op. Balance adjust against Opening balance of Reserve and surplus and balance amount ch .....

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..... arged to PL account and credit whole amount to provision and disallow whole amount to IT computation? Please kindly suggest. - Reply By Ganeshan Kalyani - The Reply = I agree with Sri Mariappan sir. - Reply By Praveen Bansal - The Reply = Liability related till previous year should be offered and added to total income at the time of computation of total income. If have any other view, p .....

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..... lease confirm. Regards, Praveen Bansal - Gratuity an leave enchasment - Query Started By: - Bijay Shrestha Dated:- 16-10-2016 Income Tax - Got 2 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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