43 b disallowance

This query is : Resolved

manoj sonalkar (Querist)
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21 September 2016 Dear Sir

Assessee has paid some PF related to some previous years ( more than 2 yrs back period ) , as it was not paid due to some clerical mistake( both employer portion & employee portion , even if not deducted from employee's salary).

Can company take allowance for the same on payment basis u/s 43B or same will be disallowed under sec 37(1) as it is not related to current period.

Thanks ,

Unnikrishnan B

Unnikrishnan B (Expert)
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21 September 2016 Employer portion can claim deduction on the basis of 43(b). But fit the portion of employees on PF firm cannot claim deduction.firm have to remit before 15 the of next month as per the act of providened fund to claim deduction

manoj sonalkar

manoj sonalkar (Querist)
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22 September 2016 Thanks , what about interest on late payment. Will it be allowed as deduction or will get disallowed as it is prior period item.

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Unnikrishnan B

Unnikrishnan B (Expert)
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22 September 2016 I think interest payment in the case of employer contribution is allowable in the deduction u/s 36(1)(iv)as interest is not pertains to income tax .
This is my opinion
Thanks