Retain
your talented employees in an effective way by introduced them a new scheme
of gratuity grouplan A comprehensive and effective gratuity plan which
reduce your business cost and corporate tax. By taking your needs into
consideration Kotak Life Insurance has designed a gratuity management
solution that not only manages your retirement liability effectively but
also helps you release resources in your core business activities.
Key Highlights of Kotak Gratuity Grouplan (KGGP)
-
Market-linked returns and long term investment growth (Unit-Linked Non-Participating
Scheme)
- Choice
of eight investment fund options.
-
Switching facility amongst the available funds.
- An
in-built life cover (flat cover of minimum Rs. 1,000 per member or equivalent
to Future Service Gratuity) that insures your employees’ lives
and provides security to their families.
-
Critical Illness cover at half of accelerated additional death cover
at a nominal cost.
Who
can opt for KGGP?
- Employer-
employee groups that fall under the purview of Payment of Gratuity Act,
1972.
- Minimum
group size: 10 members.
- Minimum
entry age: 18 years.
- Maximum
cover age: Retirement age as specified in the Trust Rules of the employer
or 65 years whichever is lower.
How does KGGP help me as an employer?
Contribution
to an approved gratuity fund is deductible under section 36(1) (v) of
the Income Tax Act, 1961.Income earned from investments by an approved
gratuity fund is tax-exempt under section 10(25) (iv) of the Income Tax
Act, 1961.
How
does KGGP help my employees?
-
The gratuity settlement for retirement/resignation/withdrawal (as
the case may be) will be settled as per the Trust Rules. Gratuity
receipts are tax-exempt in the hands of the employee up to the limit
of Rs. 3, 50,000 under section 10 (10) of the Income Tax Act, 1961.
- The
death benefit will be equal to Future Service Gratuity or a flat cover
(as agreed by the employer) plus gratuity settlement as per the Trust
Rules. Death benefits payable to the employee are exempt from tax.
- In
the event of Critical Illness, a benefit equal to rider amount, if
opted will be paid. The death benefit for the remaining term to retirement
will be reduced by the rider benefit paid.
What
are the other Services to look for?
- Switching
facility between different fund options free of charge.
-
Facility to pay the gratuity contribution in installments.
- Annual
Statement of Account with monthly newsletter.
-
Daily disclosure of Net Asset Value (NAV) of units.
- Life
cover is available 24 hours a day, 7 days a week, anywhere in the
world.
How
will the contributions be made?
Fresh contributions may be made into the plan at the employer’s
convenience. At the end of the year, the contribution payable will be
determined on the basis of the accumulated asset value and the actuarial
valuation. The premium for life cover (compulsory) and critical illness
cover (if selected) is payable annually in advance.
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