Deduction of unpaid PF & ESI Liability u/s 43B

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This query is : Resolved

Baljinder Singh (Querist)

14 December 2009 Dear Sir,

I would like to know that our PF Liability payable as on 31.03.2009 is Rs.20000/- and we have deposited on 30.06.2009 before filing of retun. The due date of deposit as per PF Act is 20th April'09.

Pls advise me it's allowable under income tax act. or not.

As per income tax Act u/s 43B statutory liability to be paid before filing the due date of retunr.

Waiting for reply.

Regards

BALJINDER SINGH

shakuntala chhangani

shakuntala chhangani (Expert)

14 December 2009 Hi Balginder,prior to finance Act, 2003, employer's contribution tovarious funds was allowed as deduction only if the same was paid on or before the due date specified u/s 36(1)(va) and if the payment was made by cheque or draft, cheque or draft should be realised within 15 days from the due date. these conditions have been deleted by finance Act, 2003, and such contributions are allowed as deduction in the year of actual payment or if paid before the due date of filing the return then in the year in which the liability is incurred subject tofurnishing the evidence of such payment along with the return of income. hence u can claim the same in A.y.2009-10. Regards, CA Shakuntala Chhangani

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