Sonu Agarwal (CA) (47 Points)
11 October 2011Sir/Friends,
I would like to know that whether the PF (Employees contribution) will be allowed as deduction in the hands of the Assesse firm if the same is paid after the due date of PF Rules. And if the same is paid after the due date of filing return of income then can the same be allowed as deduction in the following previous year.
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 11 October 2011
Dear Sonu,
As per Sec 36(1)(va)Income Tax Act, if the employer is not deposited the amount collected from Employees (Employee Contribution), regarding PF, ESI ets, with the time limit specified in those respective acts then such amount will be added to his (Sec 2(24)(x)) and and he has to pay tax on the same
Regarding Employer contribution he should deposit the same befor the due date of filing the return of income u/s 139(1), otherwise it will be allowed in the year in which they actually paid. Sec 43B
Note Sec 43B not applicable to Employees contributions
All the Best
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