LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Epf payment cheques issued but payment was not done, is this amount get deductions?

Sriram (Student) (24 Points)

18 December 2015

Sir i`m working as a PF manager, here my question is my organization issued cheques for EPF dues for last 1 year on sep 10 2015 before filling of returns but the cheques was not cleared before filing of the returns, so is this kind of payments gets deduction u/s 43B, Regards P. Sriram

Reply
Follow
Share

1 Replies

Stranger (.) (5526 Points)
Replied 18 December 2015

For the F.Y. 2014-15, employer should pay it's own contribution to EPF by separate Bank drafts or cheques (subject to realisation of draft or cheque, as the case may be, before due date of filing return) either within the same P.Y. to get deduction on payment basis or after the end of the P.Y but before the due date of filing return u/s-139(1) to get deduction on accrual basis else it will be disallowed u/s-43B.

Hence, in your case straightaway it will be disallowed u/s-43B for F.Y. 2014-15 & it will be allowed in the year of payment.

However, as per section 36(i)(va) of the Act deduction on account of employees contribution to EPF will be allowed if it is credited by the employer to the account of the employees in the relevant statutory fund on or before the due date, i.e., the date by which it is required to be credited as per the provisions of the applicable law, etc, i.e., 20th days [15 days + 5days (grace)] from the end of the month of payment of wages.