Checklist for Income Tax Compliance Approval for Gratuity Trust,

from Commissioner of Income Tax

1 (a) Name of the Employer ACS Systech Integrators

Private Limited
(b) Address of the employer’s principal Salarpuria Business Centre,
place of business No. 93 Koramangala Industrial
Layout, Bangalore- 560095
(c) Regd. Office : Salarpuria Business Centre,
No. 93 Koramangala Industrial
Layout, Bangalore- 560095
(d) Class & number of employees entitled All Employees who are aged
to admission to the fund not less than 18 Years and not
more than 65 Years. Refer to
clause 2(a) of the Trust Rules.
(i) In India 150
(ii)Outside India 0
(e) Place of maintenance of Books of Salarpuria Business Centre,
account No. 93 Koramangala Industrial
Layout, Bangalore- 560095
2 Permanent Account No. AAICS1151K

Assessing Officer Commissioner of Income tax –

Company Circle
3 Name of Fund ACS Systech Integrators
Employees Gratuity Trust

COMPREHENSIVE GRATUIY SCHEME

4 Whether the Fund is newly setup or was Already in existence w.e.f 22nd
already in existence day of December 2006
5 Application for Approval (Rule 109 of IT
Rules r.w. Rule 4 of Part C of the Fourth
Schedule)
(a) Whether the application has been YES
made by the Trustees
(b) Whether a certified true copy of Trust YES
Deed & 2 copies of the Rules attached.
(c) Whether 2 copies of accounts of the YES
fund relating to prior year have been
attached (only in case of fund already in
Existence)
(d) Whether the court fee stamp of Rs.2/- YES
has been affixed to the application (only
in case of fund already in existence)
 Page 2 of 6

e) Whether the application contains the

following details
(i) Name & Address of the employer YES
(ii) His business Profession etc. YES
(ii) Address of the employer’s principal YES
place of business
(f) Class & number of employees entitled
to admission to the fund
(i) In India 158
(ii)Outside India 0
(g) Place of maintenance of account YES
(h) If the fund is already In existence, the Refer to clause 25 of the Trust
details of Investments of the fund Deed.
6 Verification :
Whether the verification is in the
prescribed form has been furnished duly YES
signed by the Trustees (Rule 109(2) of IT
Rules, 1962)
7 Whether any alteration In Rules, NA, as the trust is seeking
constitutions, objects or conditions of the approval for the first time now
fund has been made any time after the and further there were no
date of application for the approval ? alterations/ amendments till
if so, details thereof with the ref. nos. & date.
the date of the communication to the
Dept.
7a Whether there is a provision in the Trust YES, Refer clause 9 of the
Deed / Rules, to obtain prior permission Trust Deed
of Commissioner of Income Tax to alter
the rules, constitution, objects or
conditions of the approved fund, as per
Rule 110 of the Income Tax Rules 1962.
8 Whether the definitions of the following
are as per Rule 98 of IT Rule & Rule 1. of
part C of the fourth Schedule
(i) Company ( employer ) YES, Refer ”Definitions”
(ii) Employee section of the Rules of the
(iii) Contribution Trust.
(iv) Salary
(v) Beneficiary
(vi) Fund
(vii)Trust
9 Conditions of Approval (Rule 3 of Part 8
of the Fourth Schedule)
No employees outside India 0
At Registered office of the employer 150
(a) Whether the fund & trust is YES, Refer clause 4 of the
 Page 3 of 6

established under an irrevocable trust Trust Deed

(b) Whether the trade or undertaking in YES
connection with the fund is established &
carried on In India
(c) Whether not less than 90% of the YES, Refer to clause (a) of
employees are employed in India? preliminary section of the trust
rules.
(d) Whether the fund has, for its sole Yes, Refer clause (a) of page
purpose, the provision of Gratuity for 1 of the Trust Deed
employees in the trade or undertaking, on
their retirement or on becoming in-
capacitated prior to such retirement or for
the widows, children or dependents of
such employees on their death
(e) Whether the employer is the Yes, Refer 4 (a) of the Trust
contributor to the fund (Rule 3(c) Part B of Rules
the Fourth Schedule)
(f) Whether all gratuities, pensions from Yes, Refer 11 of the Trust
the fund are payable only in India (Rule Deed
3(d) of part 8 of the Fourth Schedule)

10 Whether the fund & Trust Is established Yes, Refer to clause (b) of the
in India (Rule 99 of IT Rules) prelimnary section of the Trust
Rules.
11 Condition regarding Trustees (Rule 100
of IT Rules)
a) Whether the trust has atleast 2 Yes, Refer to clause 15 of the
trustees Trust Deed
b) (i) Whether the company defined in
the Companies Act appointed as a NO
trustee
(ii) If so, whether prior approval of the
Chief Commissioner or Commissioner NA
have been obtained
c) Whether the trustees of the fund are Yes, Refer to clause (b) of the
resident in India prelimnary section of Trust
Rules.
d) Whether there Is any provision for the Yes, Refer clause 17(b) of the
trustees who leaves India permanently Trust Deed
shall vacate his office
12 Where the employer is a company as YES, Refer to clause (k) of the
defined in the companies Act, whether Definitions forming part of the
the Director of the company is admitted to Trust Rules.
the benefits of the fund. If so whether he
is a whole time bonafide employee of the
company & does not beneficially own
 Page 4 of 6

shares of the company carrying more

than 5% of the total voting power.( Rule
102 of IT Rules, 1962)

13 Ordinary Annual Contribution ( Rule 103

of the IT rules , 1952)
a) What is the employer’s rate of The employer shall pay an
ordinary contribution in respect of annual contribution as may be
each employee for each year of his certified by the actuary of the
past service? insurer, but not exceeding
8.1/3rd % of the salary of the
member, for the year. Refer
clause 4 (b) of the Trust Rules
b) Whether the contribution to the fund No, Refer clause 4(b) of the
exceeds 8 1/3rd % of the employee’s Trust Rules.
salary for that year.

14 Initial Contribution (Rule 104 of IT Rules,

1962)
(a) What is the rate of initial contribution An initial contribution, as
in respect of each employee for each maybe certified by the actuary
year of his past service? of the insurer but not
exceeding 5 annual
installments as maybe certified
by the actuary in respect of the
past service of the Member
subject to the provisions of
Rule 104. Refer clause 4(a) of
the Trust Rules.
(b) Whether the initial contribution is Not exceeding five annual
proposed to be paid in one lump sum or installments. Refer clause 4(a)
in installment. If so, in how many of the Trust Rules.
installments?
15 Whether there Is a provision in the Deed /
Rules that the trustees shall- (Rule 101
Rules, 1962)
(a) Deposit all the monies in a Post Office Yes, Refer clause 25 of the
Savings Bank A/c in India or in a Current Trust Deed.
a/c or In any scheduled bank, or
(b) Enter in to a Scheme of Insurance Yes, into the Group Gratuity
with an insurer as defined in clause 28BB Scheme entered into with the
of Section 2 of the Income Tax Act, 1961. Metlife India. Refer clause u in
( "insurer" means an insurer, being an Indian insurance the definition section of the
company, as defined under clause (7A) of section 2 of Trust Rules.
the Insurance Act, 1938 (4 of 1938), which has been
granted a certificate of registration under section 3 of
that Act )
 Page 5 of 6

(c) All monies contributed to the fund will Yes Refer clause 25 of the
be deposited & invested in accordance Trust Deed.
with the rule 101 of the part C & sub rule
(2) of rule 67 of IT rules as amended
from time to time
(d) Accumulate the contribution in respect Yes, the trustees shall provide
of each beneficiary & provide the gratuity for such payment of gratuity.
in lump sum at the time of the retirement Refer clause 11(a) of the Trust
or death of each employee or on his Deed.
becoming incapacitated prior to the
retirement
16 Whether the Trust Deed/Rules provide
that: (Rule 106 of IT Rule)
(a) Money belonging to fund shall not be Yes, Refer clause 4 of the
receivable by the employer under any General section to Trust Rules.
circumstances
(b) The employers shall not have any lien Yes, Refer clause 4 of the
or charge on the fund general section to Trust Rules.
17 Whether, the Trust Deed/Rules provide Yes, Refer clause 1 of General
that the beneficiaries shall not assign or section in Trust Rules.
create charge upon his beneficial Interest
in the fund. (Rule 105 of IT Rules, 1962)
18 Whether the Trust Deed / Rules has a Yes, Refer clause 5 of General
provision regarding nomination of the Section in Trust Rules.
fund as required under Rule 101A of the
Income Tax Rules, 1962.
19 Whether the Trust Deed/ Rules provide Yes, Refer Clause 27 of Trust
that the trustees shall, with the prior Deed.
approval of the Chief Commissioner Or
Commissioner make satisfactory
arrangements for the payment of gratuity
to the existing employees, or on the death
of the employees to their widows, children
or dependents in the event of the
employers trade or undertaking is wound
up or discontinued,( Rule 107 of IT Rules)

20 Whether the Trust Deed /Rules provides Yes, Refer Clause 27 of the
that the Trust will be wound up only on Trust Deed.
the trade or undertaking of the employer
is wound up or discontinued & such
winding up of the fund or its
amalgamation with another fund shall be
 Page 6 of 6

with the prior approval of the

Commissioner or Chief Commissioner of
Income Tax. (Rule 108 of IT Rules, 1962)

21 Whether there-is any provision indicating Yes, Refer clause 1 of the

the manner in which the sums forfeited to General Section of Trust Rules
the trustees under the rules is utilized
22 Whether there is a provision In the Deed Yes, Refer clause 8 of the
that the administration expenses relating Trust Deed.
to the management or the trust will not be
Claimed as deduction by the employer in
computing Its Income for taxation
23 Is there a Rule to provide that where Yes, Refer clause 8 of the
there is any repugnance between any of General section of the Trust
the Rules of the Fund & the provisions of Rules.
Part C of the Fourth Schedule of the
Income Tax Act, 1961, & Income Tax Act,
1962 & also the Trust Act, the repugnant
rule/s will be void. In so far as rules
relating to the rules In Part C of Fourth
Schedule to Income Tax Act, 1961 & the
rule relating thereto, the Trustees shall, if
so required by the Commissioner of
Income Tax, remove the repugnant rules.
24 Is there a provision to the effect that the Yes, refer clause 11 of the
Trustee’s/Arbitrators decision involving an General Section of The Trust
interpretation of the provisions of the Rules.
Income Tax Act 1961, & the Rules made
there under shall be communicated to the
commissioner of Income Tax concerned.
25 Remarks of the Assessing Officer
regarding approval.