Deduction timing clarified: sums received from employees are excluded from the payment-only rule for employer contribution deductions.

The amendment inserts an explanation clarifying that the provision requiring employer contributions to employee welfare funds to be allowed only when actually paid shall not apply, and shall be deemed never to have applied, to sums received by the employer from employees that qualify as employee contributions; the existing proviso permitting deduction where payment is made by the return-filing due date with evidence remains, and the change operates for the relevant assessment year and subsequent years.

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