Koi to jawab dedo

Dear all

Please confirm me, Employees contribution to ESI & PF deducted from salary but not yet deposited by the employer before the due date of the respective act is disallowed U/s36(1)va.

What is the duty of the auditor at the time of  preparation of  Computation of Income,

  • Whether it will be add with the Net profit to find out the taxable income?
  • only give a disclosure on the Tax Audit report and the allowed/ disallowed depends upon the Income Tax officer.

Please reply soon

Regards

TRILOCHAN

Replies (14)

Dear trilochan

It will be added (employees contribution) in total income of the company.it is now treated as an income of employer( u/s 2(24)(X) ).

 

thanks

Hey...it wil be disallowed u/s 36(1) if employees contribution deducted frm salary or recved frm employee is nt deposited before the due date specified in their respective act..,
Nd it will be added to the income of company at the time of computaton of income by tax auditor...

Dear Amit Jee,

 

mera auditor bol raha hai, it is the duty of the Income tax officer to addback the expenses. pls confirm me whether he is right. Main kiun apna claint ko parisan karunga........etc.

Law:      Sec. 36(1)(va) the amount so deducted but nt credited in the employees account within due date is treated as the   income of the employer as per Sec. 2(24)(x).

again sec. 36(1)(va) is meant for check for such fault by the assessee. So I think the burden of checking whether the amount credited within in due date or not is on the Assessing Officer. So I think you should go through your Auditor,,,,,,,,,,,,,,,,,,,,,,,

actually kya hota h jo amount apne duduct kiya h use deposit to karenge na ,,,,,,,,,,

ek bar agar wo taxable ho gaya i.e. u/s. 2(24)(x) uske bad apko amount deposit karne par further koi deduction allowed nahi hoga.

ask the client to pay the tax before filing the ITR, here the liability of auditor get end by reporting only, as the expenditure is allowed as its paid before filing the return.

Trilochan

As per HC judgement if the amount of esi/pf not paid by the employer on or before due date as per their respective date then also employer can deposit the amount on or before due date of filing the ROI. you have 2 option with you now:

1. Tell your client to pay the amount before 30th sept; OR

2. Please while computing the tax add that amount since if you don't do this you might get intimation u/s 142(1) to pay the tax amount additionally.

So its better that you yourself add the amount

 

Dear CA Akhil Mittal jee

 

I am 100% agree with your answer, Sir can you provide me the Case Law which allowed  the employees contribution paid before ROI.

Regards

TRILOCHAN

Dear Nitin Agaarwal jee

You are telling go with your auditor. If i will agree with you then why the auditor add back some expenses U/s 43B, 40A(3).

So why not 30(1)va

 

Nd it will be added to the income of company at the time of computaton of income by tax auditor...

deduction can be allowed only if

Employee cont paid within next 20day of next month in case of ESI & 15 days of next month in case of PF

but the Employer cont paid within date of filling of return

if there if default in any month(s) in case of Employee Cont should be added back in computaion of income

& also report in 3CD 

i agree with mr amit

The case which Akhil ji is referring is Commissioner Of Income Tax Vs. AIMIL Ltd.( Delhi High Court)[2010]. However, if i am not wrong this case will apply only to those assessees who fall in Delhi Jurisdiction.

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