19 July 2010
Dear Friends, If a company could not deposit the PF in prescribed time in the following month ? than which amount would be add back while computation of income of any company. Further also what will be your answar if the same will be not deposited after end of the financial year. Thanks in advance.
19 July 2010
S.43B of the Income-tax Act provides that certain expenditures, which would otherwise have been allowable as deductions in computing the total income under the Income-tax Act, shall be allowed as deduction only in the year of actual payment of such items by the assessee notwithstanding the method of accounting followed by the assessee. These expenditures are listed in clauses (a) to (f) of the said Section Clause (b) of the said Section refers to the sums payable by an employer by way of contribution to any Provident Fund, Superannuation Fund, Gratuity Fund, or any other fund for the welfare of employees (‘welfare dues’). Accordingly, the deduction of welfare dues is allowed only where payment of such expenditure is actually made.
1.2 Till assessment year 2003-04, the second proviso to S.43B provided that no deduction of welfare dues covered by the said clause (b) would be allowed unless such sum had actually been paid on or before the due date as defined in the Explanation to S.36(1)(va), i.e., the due date for payment of such welfare dues under the relevant applicable law. From assessment year 2004-05, the second proviso to S.43B has been omitted, and welfare dues covered by clause (b) were brought into the purview of the first proviso, which provides that the disallowance would not operate if the sums are paid on or before the due date of filing of the Income-tax return of the year in which the liability to pay such sum was incurred, and proof of such payment was furnished along with the return.
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