Employee contribution deduction depends on timely deposit into welfare funds, with delayed payment treated as non-deductible business expenditure. Employee contributions collected by an employer for provident fund, superannuation fund, Employees' State Insurance fund, or other employee welfare funds are deductible only when deposited within the prescribed time limit. Under the current regime, payment must be made on or before the due date for filing the return of income; under the earlier regime, deduction depended on credit to the employee's account in the relevant fund on or before the due date. The note also distinguishes employee contributions from employer contributions under section 43B(b).
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Employee contribution deduction depends on timely deposit into welfare funds, with delayed payment treated as non-deductible business expenditure.
Employee contributions collected by an employer for provident fund, superannuation fund, Employees' State Insurance fund, or other employee welfare funds are deductible only when deposited within the prescribed time limit. Under the current regime, payment must be made on or before the due date for filing the return of income; under the earlier regime, deduction depended on credit to the employee's account in the relevant fund on or before the due date. The note also distinguishes employee contributions from employer contributions under section 43B(b).
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
