Employer's contribution to Provident Fund

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JIGAR SHAH

37 Points Posted on 22 February 2010

Say for e.g. if employer contribution for april month comes to 5000 rs. which shall be generally be deposited with

employee's contribution of rs. of 5000 by 20th may.(15 th may add 5 days of grace.. isnt it??), now if it is not deposited by due date then EMPLOYEE's contribution will be considered as income of employer and will be chargeable to tax. NOW THE QUESTION is for employer's contribution of rs. 5000 which is not deposited by 20 th may, wht shall be done???

whether it will be disallowed in P.F. Act or Income tax act????

and if both contributions are deposited by 25th may then whether employer's contribution will be allowed under 43B or its's applicable for march month's contribution only????

Replies (9)

Pradeep Sharma

student

114 Points Posted on 22 February 2010

dear jigar

as per the income tax act there are certain exp. which are allowed on actuall payment basis & PF is one of those. so the employer contribution will be allowed as exp.

Puneet Mittal

Sr. Officer Accounts

212 Points Posted on 24 February 2010

Dear Jigar,

As per sec 43b of income tax act contribution of employer is allowed on payment basis. if an employer deposit his contribution upto the date of return than exp. will be allowed in same financial year. this is applicable for total year.

Aditya Maheshwari

CA in Practice

35867 Points Posted on 24 February 2010

Employers contribution to PF paid even after the due date as the PF Act but before filing of income tax return is allowable u/s 43B

C.Balaji

Learner

1867 Points Posted on 24 February 2010

Dear Jigar sir.....

Agree with Aditya Maheshwari

Employers contribution to PF paid even after the due date as the PF Act but before filing of income tax return is allowable u/s 43B

C.Balaji

Learner

1867 Points Posted on 24 February 2010

Dear Jigar sir.....

Agree with Aditya Maheshwari

Employers contribution to PF paid even after the due date as the PF Act but before filing of income tax return is allowable u/s 43B

Divya Karthik

459 Points Posted on 30 July 2010

But what if Employees contribution not paid within the PF due date, but paid before filing Income Tax return?

Divya Karthik

459 Points Posted on 30 July 2010

For the FY 2009-10, the employees & employers contribution for the month of March 2010 is paid in May 11th 2010 in a firm.

What should be disallowed:Employers or Employees?or both?

Kindly help....

Rohit Khanpara

Dy Manager

21 Points Posted on 17 June 2011

how can i know the PF account balance my PF account no is GJ/1061/41219 TCL PF thust

R Sai Kumar

Article Assistant

25 Points Posted on 21 July 2011

Hi everyone,

Is there any limit for employers contribution towards PF?

And if employer contributes 12% of actual basic ( exceding the limit of 6500) , is the whole amount is deductable in the books of employer as expense or restricted to 780( 12% of 6500 ) ???????