23 February 2011
Dear Sir Pl let me know if PF & ESI Contributions ( Employees & Employers) are remitted after the due date, will it be added back to Income while computing the Income Tax. If so is it only the Employees contribution or both Employees & Employers Contributions.
Employees Contribution should be deposited with the due dates given under respective ACTs of PF/ ESI.
However
For Employers contribution the maximum time limit is upto the Due Date of Filing the Return of Income under Sec 139(1)
If in ur case Both Employer's & Employees contribution has been deposited after the Due Date of Filing the Return of Income under Sec 139(1), then both shall be Disallowed.
24 February 2011
if the employees contribution is not deposited by the due date prescribed under the relevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for which specific provisions are made in the Provident Fund Act as well as the ESI Act. Therefore, the Act permits the employer to make the deposit with some delays, subject to the aforesaid consequences. Hence, Income Tax vs. Aimil Ltd. & Others in (2010) 229 CTR (Del) 418 : (2010) 35 DTR 68, Delhi High Court ruled in favor of assessee.
CAclubindia
