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

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