Esic and epf and tds

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This discussion clarifies the tax implications of late payments and filings for ESIC, EPF, and TDS. It highlights that delayed employer contributions to ESIC and EPF can lead to disallowance as expenses. Furthermore, delayed deposit of employee contributions beyond due dates can be treated as income under the Income Tax Act, as confirmed by the Apex Court. This has significant consequences for tax audits and overall income tax computations for individuals, partnerships, companies, and LLPs.

Hukam Chand

Hukam Chand (Querist)

27 December 2024 Dear Sir,
Kindly Discuss all things about the ESIC and epf and Tds if any taxpayer delayed the payment of ESIC, EPF, TDS as well as delayed filling the return of ESIC, EPF, TDS then what impact on the income tax in case of individual, Partnership firm, Company, LLP

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 December 2024 In case of tax audit cases such expenses of EPF and ESI will be disallowed under income tax computations.
30% of expenses will be disallowed for non deduction of TDS.

Hukam Chand

Hukam Chand (Querist)

28 December 2024 Sir
Pls let me know about esic and epf disallowed as per the mew advisory if any taxpayer under fall the category of tax audit then what impact or consequences impact on the income tax and tax audit and if taxpayer delayed and failure of deposited the payment and return of esic and epf

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 December 2024 The entire contribution PF and ESI by the employer claimed as expenses in the profit and loss account will be disallowed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 December 2024 The delayed deposit of employees' share of contributions towards ESIC and EPF by the assessee beyond the due dates prescribed under the respective Acts would constitute income of the assessee by virtue of Section 36(1)(va) read with Section 2(24)(x) of the Income Tax Act. The Apex Court in Checkmate Services Pvt. Ltd.

Hukam Chand

Hukam Chand (Querist)

29 December 2024 Thanks for sharing the information

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 December 2024 You are welcome...
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