Employer's contribution to Provident Fund

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)

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. 

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.

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

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

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

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

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....

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

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 ) ???????

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