Delayed remittance in regard to employees contribution to PF

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G Srikanth (Querist)

18 April 2011 In my company, we made a delayed remittance in regard to employees contribution to EPF from 1st April 2010 to 28th February 2011, but with in the financial year 2010 - 2011 with a delay of one week to 10 days from the due date, for a period of 6 months in the year, and for the month of April 2011 the payment was made with in the due date.

Now my Question?

1. Whether the delayed payment is allowed under Income Tax for computation of Income tax of the company for the financial year 2010-11 u/s 36(1)va,both Employee and Employer contribution.
2. Under sec 43B , this is allowed as per my knowledge, with effect from the amendment of Finance Act 2004.
3. Am i correct ?

Kindly explain the same with the case laws if any with out any delay please.

Thanks in advance.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

19 April 2011 Employees contribution will not be allowed to be deducted under section 36(1)(va) because payment has not been made by due date
Employers contribution will be allowed to be deducted by virtue of section 37(1) R/w section 43B

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)

19 April 2011 You are partially correct as

- Deduction on account of Employees' contribution will be allowed only if if it paid within the due date specified in the Act governing EPF provisions and not due date as specified for filing for Income Tax Return. Therefore in your case, it will not be allowed as deduction U/s 36(va)

-Deduction on account of employer's contribution should be paid before due date for filing of Income Tax Return.

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