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Reg recovered EPF

Tax queries 430 views 1 replies

HI to all

Can some one help me to clear my confusion on following aspects:

1) When is EPF recovered from employees is taxable

2) Under which head it should be taxable

3) If such amount which is taxed earlier is remitted to the pf authorities in the next year how will it be claimed

Thanking you

Regards

Arjun

Replies (1)

First you refer Section 2(24)(x) of the IT act, in which the contribution from employees towards Provident find has been treated as Income and then deduction has been allowed under Section 36(1)(va) if the said amount recovered from emplyees, has been paid to concerned authorities before the due date. If it is not remitted before due date, no deduction will be allowed, neither in the year of  delayed remittance  nor in the year in which it was later remitted. Hence, the assessee is losing the tax on the above geniune payments, it it is not remitted within the due date. However, in respect of employers contrbutions, deduction is admissible in the year of payment and deduction can be availed for delayed payment, it it was remitted before the date of filing return of the concerned previous year.

As it is already included under the head "income from business or profession" and no other heads of income will be required to tax the same.

 


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