Gratuity insurance policy in India enjoys subscription tax benefits. Contributions to a gratuity policy for employee benefits are treated as a regular business expense. Management of superannuation funds is always a complex task for any organization, especially when one does not have a specialized treasury management function. A mistake in fund management can bring liability to the authorities. For gratuity scheme, you should be able to prove that a person was eligible and had worked for over 5 years in the company. Under the Group Superannuation scheme, the funds are invested scientifically and in a well-researched mix of equity and debt. The annual contribution under superannuation scheme and gratuity policy benefits is seen as a business expense, it helps in retaining valuable employees, and it can play a big role in attracting talented resources to the company. Group Gratuity Insurance is a part of a group insurance family. Outsourcing the group gratuity insurance policy advisor allows flexibility and professional management of funds apart from the easy administration of the benefits.
Gratuity fund management requires formation of a trust and obtaining expense exemption from the IT authorities on the contribution made for the fund. Insurers will advise on the same.
Plan management is the most important aspect of the Superannuation fund. Giving it to insurers helps management of fund in a large pool, creates security and eases administration.
Employers can make multiple choices on investment from conservative treasury bonds to a moderate risk equity and debt combination fund. Edify can help you make the right choice.