ESI computation

[Guest]

ESI Cheque depoisted in Bank before 20th , Cleared on 23rd.whether will be added in computation in terms of section 2(24)r.w 36(va). If no please quote case laws.

[DEV KUMAR KOTHARI]

The date of tender of cheque is the date of depsoit or payment, further has has also been cleared within three days and it was not a case of return of cheque. So the payment is allowable even as per old law. Now payment made is allowable in the year of paymetn without consideration of due date as the second proviso has been omitted. See S. 43B

AI Summary

ESI Cheque Deposited Before Due Date Counts as Payment Under Income Tax Act Section 2(24) and 36(va) A query was raised regarding whether an ESI cheque deposited before the 20th and cleared on the 23rd should be included in the computation under section 2(24) read with 36(va) of the Income Tax Act. The response clarified that the date of tender of the cheque is considered the date of deposit or payment. Since the cheque was cleared within three days and not returned, the payment is allowable under the old law. Furthermore, with the omission of the second proviso, such payments are now allowable in the year of payment regardless of the due date, referencing section 43B.