Enhanced Death Benefit:

As part of the Tata AIG Life Comprehensive Gratuity Scheme, an additional benefit of life insurance cover is included.
In the unfortunate event of a serving employee's death, the coverage would provide for a lump sum payment equal to:

• The Future Service Gratuity (i.e. Total Service Gratuity less Accrued Service Gratuity) OR
• A flat benefit amount determined at the inception and subsequent renewal of the coverage subject to a minimum of Rs.1,000/-

Tax Benefits for the Employer*:

• Past Service Contribution is allowed as deductible business expense to the extent of 8.33% of the member's salary during the each year of employee's past service. (Rule 104)
• Contributions up to 8.33% of the employee's salary is allowed as deductible business expense u/s 36(1) (v)
• Interest Income on the fund is tax free u/s 10(25) (iv)

Tax Benefits for the Employee*:

• Gratuity received is exempt from tax up to half a month's salary for every completed year of service or Rs. 10 lakhs ^, whichever is less u/s 10(10).

(*Tax laws are subject to amendments thereof).
^ As per the guidelines circulated by the gazette of India dated 18th May 2010.