Allowability of employer's contribution to funds for the welfare of employees in terms of section 43B(b) of the Income Tax Act

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....he welfare of employees in terms of section 43B(b) of the Income Tax Act. As per section 43B of the Act certain deductions are admissible only on payment basis. It is observed by the Board that some field officers disallow employer's contributions to provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, by invoking the provisions of section 43B....

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....if he deposits the contributions to welfare funds on or before the 'due date' of filing of return of income. 3. Accordingly, w.e.f. 1.4.1988, the settled position is that if the assessee deposits any sum payable by it by way of tax, duty, cess or fee by whatever name called under any law for the time being in force, or any sum payable by the assesse as an employer by way of contribution t....