If employer deposited the amount of employees contribution after the due date but before filing the return, is the expenditure allowed in income tax.
Please quote the relevant section.
no its not allowed in pf or either in esi. you'll get notice for sure even is its Rs. 100.
1. No, Employer needs to remit the amount of PF ( employee's contribution )within due date ( 15th of succeeding month ). If not, the same will not be allowed as a deduction even if it was remitted before filing the ROI.
The following points merit attention,
2. This is simply because sec 43B only covers expenditure incurred by the employer and it will be allowed on actual payment basis. Whereas sec 36(1)(va) requires the employer to remit the amount collected from an employee within the due date. Due date in here refers to the due date specified for remittance for such contribution under the respective act. Sec 2(24)(x) includes the collection of employees contribution as income in the hands of the employer once it's been collected from them.
3. Conjoint reading of all the three sections we can conclude that sec 43B only deals with expenditure incurred by employer on an actual basis, sec 36(1)(va) requires the employer to remit the contribution within due date specified under the respective act and sec 2(24)(x) considers the above contribution of employee as income of the employer. Hence sec 43B cannot be enforced in here, thus sec 36(1)(va) requires the employer to remit within the due date on failing which the deduction will not be allowed to be claimed.
4. Refer Case law Ms. Unifac Management Services (India) Vs DCIT (Madras High Court)
Please correct me if the above interpretation has an alternative view
CAclubindia
