PF-Employee contribution

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RAJASEKHAR (Querist)
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16 September 2009 Sir,
1.What is the due date to deposite the PF and to file the return.

2.What is the Maximum and minimum percentage of the contribution from both employer & employee to this PF A/C.
3.
A.If the PF- employee contribution is not paid within due date and paid before 30th september or before filing the return of income.
B.If the PF- employee contribution is not paid within due date and NOT paid before 30th september or before filing the return of income.

WHICH ONE IS DEDUCTABLE UNDER INCOME TAX ACT in point 3,PLEASE TELL THE REASON ALSO.....
THANKS IN ADVANCE SIR.......PLEASE

chetan soni

chetan soni (Expert)
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16 September 2009 Here is the reply to your questions:

01. The due date of payment of PF liability is 15th of next month. Say PF liability for April to be deposited in bank by 15th May.

02. Employer's obligation to contribute to PF is 12% & for employees 12% is minimum & maximum can be 20%.

03A. IF the PF contribution is not paid within due date then the employer contribution will deemed income of the employer u/s 2(24)(x)& same is permanent disallowance. Foe employee contribution the same will be allowed u/s 43B if the payment made before due date of return of income.

03B. The employer contribution will be treated as income u/s 2(24(x) & employee contribution will be disallowed u/s 43B in the year of liability & will be allowed as deduction in the year of payment.