Section 36(1)(va)

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biswojit (Querist)
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29 October 2010 Hello Experts,

Good morning!
I have a small querry in section 36(1)(va) of Income tax act.Our company is paying increased/arrear of salary/wages on 28,oct.,10 for the m/o Apr-10 to Sept-10.
Q.My question is:
being we are paying increased salary, we are also have to deposit EPF and ESIC on increased part of salary on the applicable amountfor bothe employee and employer contribution(legal obligation is there).But being the due date of depositing the same has been expired for the month of Apr to Sept-10, whether the employees contribution part will be allowable under income tax act of section 36 (1)(va) or not.
My view is :it shall be allowed being the company is received (as per language of income tax act)the employees contribution on the date of due of increased/arrear salary/wages.

Kindly reply.
regards
Biswojit

CA Ankit Shah

CA Ankit Shah (Expert)
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29 October 2010 Arrears salary entries will be made in october 2010 and PF / ESI will be paid along with salary.

PF / ESI due date fall on 15.11.2010. not earlier

You r right

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 October 2010 The view expressed above is based on the explanation to the referred section and hence I support your understanding as well as Ankit Ji's observation.

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