Deduction u/s. 43B - Provident Fund & ESI

[Advocate Anumita]

Allowability of Deduction of payment made on account of Contribution of Provident Fund and E.S.I. -

Every organization is responsible to make correct and timely mandatory deductions towards contribution made on account of Provident Fund, E.S.I and any other statutory obligations, or else are made responsible to for withholding employees' contribution due to failure in remitting these amounts to respective statutory authorities. Consequences, as simple as that –"non-allowability of claim of deduction under Income Tax Act, 1961".

Hence, complying with the timelines as prescribed under the specified Acts is necessary in order to get the entitled benefit under Income Tax Law. Therefore, one needs to be well versed with the latest rules and regulations so as to avoid the unintended non-compliance and consequences thereof under these Acts. These statutory deductions are complex and failure for non-compliance leads to monetary punishments. In a way an organization end up paying hefty amount and efforts for its necessary compliance. 


http://asmlegal.blogspot.in/2012/12/allowability-of-claim-of-deduction-of.html

[Ramasamy]

Will Employee contribution of PF and ESI treated as income in the hands of employer if it is not remitted on or before due date mentioned in PF & ESI Act?