Delay in Remittance of PF & ESI

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2011 Dear Sir
Pl let me know if PF & ESI Contributions ( Employees & Employers) are remitted after the due date, will it be added back to Income while computing the Income Tax. If so is it only the Employees contribution or both Employees & Employers Contributions.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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24 February 2011 Hi,

Employees Contribution should be deposited with the due dates given under respective ACTs of PF/ ESI.

However

For Employers contribution the maximum time limit is upto the Due Date of Filing the Return of Income under Sec 139(1)

If in ur case Both Employer's & Employees contribution has been deposited after the Due Date of Filing the Return of Income under Sec 139(1), then both shall be Disallowed.

Thank you

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

Praveen Sharma

Praveen Sharma (Expert)
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24 February 2011 if the employees contribution is not deposited by the due date prescribed under the relevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for which specific provisions are made in the Provident Fund Act as well as the ESI Act. Therefore, the Act permits the employer to make the deposit with some delays, subject to the aforesaid consequences.
Hence, Income Tax vs. Aimil Ltd. & Others in (2010) 229 CTR (Del) 418 : (2010) 35 DTR 68, Delhi High Court ruled in favor of assessee.

caferoz

caferoz (Expert)
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24 February 2011 As highlted by other Expert i Agree,

But i request the querist to state what is DUE DATE in the above context of question asked.

Is it due date under respective act or Under IT Act.

This will help us to give you right answer than many creating ambiquity.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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24 February 2011 Hi,

Agreed

Thank you

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

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