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Pf and esi late payments and year end March provision compulsory

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Kollipara Sundaraiah

B.com

2405 Points Posted on 20 September 2023

it assessess pf and esi subscripttion payments for f.y.22-23 three months pf and esi subscripttion amounts 20th day pay for month
question:
1.late payments amount expenses claim allowed
2.pf and esi subscripttion year ended March provision compulsory.

Replies (2)

Quick Summary

This discussion clarifies the rules around late payments for Provident Fund (PF) and Employees' State Insurance (ESI) contributions for the financial year 2022-23. It highlights that employee contributions deducted from salaries must be deposited by the due date to be claimable as an expense. Late deposits, even before the Income Tax Return deadline, result in a permanent disallowance of the employee's share. Employer contributions, however, are allowed if paid by the Income Tax Return due date.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 20 September 2023

1. No
2 Yes

Aashok Kumar Sharma

Finance/Compliance Consultant

75646 Points Posted on 08 November 2026

Late PF and ESI deposits:
• Employees' contributions (deducted from salary) to PF and ESI must be deposited by the due dates under the respective Acts (15th of the next month) to be deductible (Sec 36(1)(va); Checkmate Services, SC 2022). Late deposit (even before the ITR due date) means a permanent disallowance of the employee contribution.
• Employer's contributions: allowed under 43B if paid by the ITR due date.
• So for the 3 months of late payment: the employees' share is disallowed. The employer's share is allowed if paid by the ITR due date.
• Report in Form 3CD clause 20(b).