Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

U/s 43B

CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)

03 October 2009

Hi! Dear members

I hv a doubt regarding Proviedend Fund Payment, wn employer paid PF after Due date but Before filing returen of income. wt is the disalawence? (disalowed only employee contribution or both employee and employer contribution?)

Reply
Follow
Share

5 Replies

BHAGYESH RAVANGE (C.A Job) (1528 Points)
Replied 03 October 2009

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.

CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)
Replied 03 October 2009

Originally posted by :BHAGYESH RAVANGE
"	Nothing is disallowed u/s 43B if it is paid before the date of filing return	"

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----

(Guest)

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

CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)
Replied 03 October 2009

Originally posted by :Born to rule
"	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---

Max Payne (employed) (2569 Points)
Replied 03 October 2009

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