U/s 43B

Employer's contribution is disallowed in tu/s Sec 43B if it is not paid before the due date of filing of the return , but employee's contribution is disallowed in terms of Sec 36 if it is not deposited within the due date i.e 15th of every month.

 

Ok, Wt abt Employee contribution to PF(wn paid after due date as per PF Act)? is it considered as income of the employer U/s 2(24)?

Thanks & Regards----

ya If employee contribution is not paid within due date then it will be treated as income of the business

Thanks, I want clarity regarding this, is it disallowed only employee contibution or both employee and employer contributions ?

Thanks & Regards---

Employees contribution is deemed income by virtue of section 36(1)(va) read with 2(24)(x), i.e., if u have failed to make the TIMELY remittance of employees' contribution of a month, it is your income for that year, whether u pay it with interest or not before 30th september.

Employer's contribution can be claimed if the payment is made on or before 30th September as provided in section 43B(2)

Interest on both the contribution can be claimed as an expense on accrual basis for employees' and employer's contribution subject to section 43B