provident fund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2010 Dear Friends, my company has deposited PF from April,2009 to Feb, 2009 in the month of March,2010. Our auditor is disallowing the employer contribution while computing the income under Income tax U/s 36, but as per my view as per section 43B, if someone deposit the PF before filing the return, that will be fully allowed as deduction. plz suggest your valuable advice on the matter.

Arun

Arun (Expert)
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27 August 2010 It can be claimed as expenses U/s 43B of the income tax Act. As per the section

Any sum payable by an employer by way of contribution to PF for the welfare of employees , then the expense deductible in the year in which payment is actually made ,

Exception if payment in respect of the aforesaid expenses is actually made on or before the due date of submission of return of income it can claim in the year of expenses.

Pls note that the above provision is applicable for Employer Contribution. If employee contribution is not made with in due date then it will be disallowed.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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27 August 2010 As per The judgement of Honorable Sc in the case of CIT vs ALOM Extrusions D, it is a allowed expenditureor no disallowance u/s 43B even paid after the end of financial year but before the date of filing of return for both employee and employer contributions.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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27 August 2010 any EPF payment after 21st of next month will be add back. income tax will be applicable on that part.

Exps. will be allowed on payment period.

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