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ESIC in Income tax returns

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Shreepad Kulkarni

24 Points Posted on 23 November 2021

(as a employee)can we claim ESIC deduction in 80C?
or there is any other section for claiming esic deduction?

Replies (2)

Quick Summary

This discussion clarifies whether employees can claim deductions for their ESIC contributions under Section 80C or any other section of the Income Tax Act. The consensus is that the employee's share of ESIC is not an eligible deduction. While the company's contribution is exempt income, the employee's portion doesn't qualify for tax relief. It's also noted that individuals eligible for ESIC are typically below the tax bracket, making the deduction's impact minimal even with higher incomes.

CA Raj Doshi

Practising CA

5649 Points Posted on 23 November 2021

I don't think esic is an eligible deduction under any section.

JJJ

Need help

436 Points Posted on 23 November 2021

The Company's share is exempt income and the employee's share does not qualify as a deduction under any section.

Also, what scenario will bring ESIC into the picture. Typically people eligible for ESIC are well outside the tax bracket. And even if other sources of income are very high, the employee's share is so small it won't make a meaningful difference in the tax.