Employee's contribution received by the employer

Same is disallowed from expenses & also added as income of employer.....

but under which head , pgbp or IOS

No...
Employee's Contribution not added to Employer Income. It's shown under liability head and Payable with interest and penalty. At the time of Audit or will be notified by Auditor after paid the liability then Auditor will file the ITR.

for ipcc exam point of view this contribution shall shown under which head of income of employer , tell me that

Disallowed under Salary Paid head and It will be added into PandL... I think it is treat under PGBP...

It is disallowed in PGBP not salary as employer is making cont. to PF which is his expense.

for employer it shall be treated as income as per sec 2(24)
further, if he doesn't deposit the same within the time limit prescribed, he will not get deduction under section 37(iva)

Hello Experts.,

I agreed with both of Your replies...


But,
Querist asked "EMPLOYEE's CONTRIBUTION"...
What about Employees contribution deducted by employer but not paid to govt..

Where from deduct EMPLOYEES CONTRIBUTION..?
As per my view Employees contribution deduct from their salary. Also company write the expenditure in the head of salary. After calculatd salary then deduct employees contribution in the employee salary after paid balance amount...


@ Rashmi.,
Simply said under PGBP...!
What is exact definition of PGBP...?
Is it single activity...?

If PGBP then where to book this account?.

okay so first of all, since it is employees contribution, it will not be added in his salary instead he gets a deduction under 80C

further, since the PPF amount is deposited by employer,
the employers contribution will be eligible for deduction under 37 (iv)
and the amount received by employee for his contribution will first be treated as income under 2 (24) , and if deposited within time limit will be eligible for deduction under 37 (va)
further, if not deposited, will be deemed income under section 41 for the employer.
pls read the bare act, because the definition of income 2 (24) is inclusive. :)

Please,

First understand the Query and Second go to read the replies....

 

Also Please find the diffrence between "EMPLOYEE'S CONTRIBUTION & EMPLOYER'S CONTRIBUTION"

How to account these head in books of accounts in company (employer)...?

What is Employer's Contribution and It's accountability...?

What is EMPLOYEE'S CONTRIBUTION & Where from this amount and It's accountability...?

well in that case, I think you should read my last reply again.
I've given the solution to both of the cases.

Oh God....!!!

What "WELL"....?
What Solution...?

Totally it's wrong then where it solution...???


Okay...
Enjoy Yourself for the details....

I don't even know what you're arguing about, jeez.

		Employee's contribution	Employer's contribution
1)	Income	Income as per section 2(24)(x) Because it is recovered from salary payable and paid on their behalf. Nothing to do with the salary cost.	No question of income.
2)	Deduction	When paid, allowed as deduction. Section 36(1)(va), 43B(b)

 

e.g.

Salary: 1 lac
Employer’s contribution: 12,000
Employee’s contribution: 12,000

Total salary cost to employer: 1 lac + his contribution (12,000) = 1,12,000, where 12,000 is allowed as deduction only on payment. [Section 43B]

Employee’s contribution of 12,000 is treated as income. Since it is related to business, it is income from PGBP. However, the amount is allowed as deduction only on payment.

Sample Computation:

PROFIT                                              28,12,000
Employee’s contribution                   12,000

INCOME                                           28,24,000

Deductions:
Salary                                                 1,00,000
Employer’s contribution paid           12,000
Employee’s contribution paid           12,000

NET INCOME                                  27,00,000

 

Hope it clears the doubt.