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Disallowance of employees share of contribution to pf

Tax queries 806 views 4 replies

Sudhansu Mohapatra

Audit Executive

15 Points Joined October 2016

Dear All,

I have one doubt regarding the allowability and disallowability of contribution to PF. One of my client failed to deduct PF from his employees salary during the year(PY-2017-18) but in the Month of march 2018 employer himself contributed both ee's contribution and er's contribution. But as per Section 36(1) (va) employees share of contribution if not deposited within the due date as mentioned in the same law will be treated as income.Please suggest me how to treat the same.

Plz Suggest ...

Replies (4)

Kishore Mohan

48 Points Joined September 2018

It is allowable as expenditure if the deposit has been made before due date of filing ITR.

Sudhansu Mohapatra

Audit Executive

15 Points Joined October 2016

But as per Section 36(1) (va) employees share of contribution if not deposited within the due date as mentioned in the same law (PF) will be treated as income and not deductable.

Kishore Mohan

48 Points Joined September 2018

It was upheld in a case law by the court as the same can be allowed as expenditure though the same has not been deposited within the due date of Pf if he has deposited before filing due date of return