Income Tax Act, 2025
Section 8: Ins. by Act 7 of 2017, s. 15 (w.e.f 12018).
8. Ins. by Act 7 of 2017, s. 15 (w.e.f 12018).
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payment is so made or tendered, no person shall be allowed to raise, in any suit or other proceeding, a
plea based on the ground that the payment was not made or tendered in cash or in any other manner.]
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2[(7) (a) Subject to the provisions of clause (b), no deduction shall be allowed in respect of any
provision (whether called as such or by any other name) made by the assessee for the payment of gratuity
to his employees on their retirement or on termination of their employment for any reason.
(b) Nothing in clause (a) shall apply in relation to any provision made by the assessee for the purpose
of payment of a sum by way of any contribution towards an approved gratuity fund, or for the purpose of
payment of any gratuity, that has become payable during the previous year.
Explanation.—For the removal of doubts, it is hereby declared that where any provision made by the
assessee for the payment of gratuity to his employees on their retirement or termination of their
employment for any reason has been allowed as a deduction in computing the income of the assessee for
any assessment year, any sum paid out of such provision by way of contribution towards an approved
gratuity fund or by way of gratuity to any employee shall not be allowed as a deduction in computing the
income of the assessee of the previous year in which the sum is so paid.]
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4[(9) No deduction shall be allowed in respect of any sum paid by the assessee as an employer
towards the setting up or formation of, or as contribution to, any fund, trust, company, association of
persons, body of individuals, society registered under the Societies Registration Act, 1860 (21 of 1860),
or other institution for any purpose, except where such sum is so paid, for the purposes and to the extent
provided by or under clause (iv) 5[or clause (iva)] or clause (v) of sub-section (1) of section 36, or as
required by or under any other law for the time being in force.
(10) Notwithstanding anything contained in sub-section (9), where the 6[Assessing Officer] is
satisfied that the fund, trust, company, association of persons, body of individuals, society or other
institution referred to in that sub-section has, before the 1st day of March, 1984, bona fide laid out or
expended any expenditure (not being in the nature of capital expenditure) wholly and exclusively for the
welfare of the employees of the assessee referred to in sub-section (9) out of the sum referred to in that
sub-section, the amount of such expenditure shall, in case no deduction has been allowed to the assessee
in respect of such sum and subject to the other provisions of this Act, be deducted in computing the
income referred to in section 28 of the assessee of the previous year in which such expenditure is so laid
out or expended, as if such expenditure had been laid out or expended by the assessee.
(11) Where the assessee has, before the 1st day of March, 1984, paid any sum to any fund, trust,
company, association of persons, body of individuals, society or other institution referred to in
sub-section (9), then, notwithstanding anything contained in any other law or in any instrument, he shall
be entitled—
(i) to claim that so much of the amount paid by him as has not been laid out or expended by such
fund, trust, company, association of persons, body of individuals, society or other institution (such
amount being hereinafter referred to as the unutilised amount) be repaid to him, and where any claim
is so made, the unutilised amount shall be repaid, as soon as may be, to him;
(a) Subject to the provisions of clause
Nothing in clause
shall apply in relation to any provision made by the assessee for the purpose
of payment of a sum by way of any contribution towards an approved gratuity fund, or for the purpose of
payment of any gratuity, that has become payable during the previous year.
Explanation.—For the removal of doubts, it is hereby declared that where any provision made by the
assessee for the payment of gratuity to his employees on their retirement or termination of their
employment for any reason has been allowed as a deduction in computing the income of the assessee for
any assessment year, any sum paid out of such provision by way of contribution towards an approved
gratuity fund or by way of gratuity to any employee shall not be allowed as a deduction in computing the
income of the assessee of the previous year in which the sum is so paid.]
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4[
No deduction shall be allowed in respect of any sum paid by the assessee as an employer
towards the setting up or formation of, or as contribution to, any fund, trust, company, association of
persons, body of individuals, society registered under the Societies Registration Act, 1860 (21 of 1860),
or other institution for any purpose, except where such sum is so paid, for the purposes and to the extent
provided by or under clause
5[or clause
of sub-section
of section 36, or as
required by or under any other law for the time being in force.
Notwithstanding anything contained in sub-section
out of the sum referred to in that
sub-section, the amount of such expenditure shall, in case no deduction has been allowed to the assessee
in respect of such sum and subject to the other provisions of this Act, be deducted in computing the
income referred to in section 28 of the assessee of the previous year in which such expenditure is so laid
out or expended, as if such expenditure had been laid out or expended by the assessee.
Where the assessee has, before the 1st day of March, 1984, paid any sum to any fund, trust,
company, association of persons, body of individuals, society or other institution referred to in
sub-section
to claim that so much of the amount paid by him as has not been laid out or expended by such
fund, trust, company, association of persons, body of individuals, society or other institution (such
amount being hereinafter referred to as the unutilised amount) be repaid to him, and where any claim
is so made, the unutilised amount shall be repaid, as soon as may be, to him;