Income tax on esi...urgent.....

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Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2017 Dear Experts,
From 1/1/2017 ESI ceiling limit has been extend from 15000 to 21000,
My query is suppose Mr. X gross salary is 20000 PM and his employer have deducted total 6.5% ESI i.e. 4.75% employer contribution and 1.75% employee contribution. Pls clarify weather this 6.5% contributions shall be added in his income for the chargability of income tax or not?

Thanks & Regards
Mukesh Chahan

CA Suresh Jain

CA Suresh Jain (Expert)

12 January 2017 The Employer can not deduct more than 1.75% from salary. The Employee's contribution deducted is already included in his salary. Employer's contribution is not to be included in salary for Income Tax Computation

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2017 Mam for example if employee gross salary is 240000 PA and 1 75% ESI contribution is 4200. And also he have the income from other sourses of Rs. 146890/-. So my question is for ibcome tax purpose weather his salary will be taken 235800 or gross salary 240000

CA Suresh Jain

CA Suresh Jain (Expert)

12 January 2017 No deduction is allowable for ESI contribution in Income Tax. The Gross salary for IT purpose would be 2,40,000.00

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2017 Mam one more query....
I had filed belated return of AY 2016-17 and the assessment of this return has also been done by IT deptt. Pls clarify can i file rectification of this return now

CA Suresh Jain

CA Suresh Jain (Expert)

12 January 2017 Yes, you can file application for rectification u/s. 154

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