EPF,ESIC

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This query is : Resolved

RAJASEKHAR (Querist)

20 October 2009 1.What will happen if the employee contribution & Employer contribution to PF is not paid to credit of GOVT within the due date.
2.What will happen if ESIC, EDLI, EPS ARE not deposited within the duedate to GOVT.
3.IF the employee contribution & Employer contribution to PF is paid within 6 months from the end of the FY OR before filing the return...is it deductable expenditure or not under ITAX ACT 1961.
4.THE interest, penalty paid on delay in payment of the PF contribution from employee&employer,TDS, ESIC, EDLI, EPS is the deductable exp or not in p/l for tax calculation

pLEASE CLARIFY IT....THNKS IN ADVNCE

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)

20 October 2009 if any tax dues are paid before filing the return within the due date are allowable expenses. Further, any interest paid(otherthan penalties) are allowable expenses.under Section 36 and 37 of IT Act.

Aditya Maheshwari

Aditya Maheshwari (Expert)

21 October 2009 I beg to differ from the above.
Employers contribution is allowable u/s 43B of income tax act even in case of delay but employees contribution not allowable u/s 36(1)(va) in case of delay of even 1 day and it will never be allowed and it applies to any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employeesâ€™ State Insurance Act, 1948 (34 of 1948), or any other fund for the welfare of such employees.

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