Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT
1 year, 9 months ago

Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has held that payment towards an employee’s contribution to the provident fund after the due date is not allowable as a deduction.The two-member bench of Sandeep Singh Karhail and Om Prakash Kant has relied on the Supreme Court's decision in the case of Checkmate Services Ltd. and ruled. The Mumbai Bench of the Income Tax Appellate Tribunal has held that payment towards an employee’s contribution to the provident fund after the due date is not allowable as a deduction. The two-member bench of Sandeep Singh Karhail and Om Prakash Kant has relied on the Supreme Court's decision in the case of Checkmate Services Ltd. and ruled that the non-obstante clause under Section 43B or anything contained in that provision would not absolve the assessee from its liability to deposit the employee’s contribution on or before the due date as a condition for the deduction. The ITAT noted that the employee’s contribution to the provident fund was deposited by the assessee after the due date prescribed under the relevant statute but within the due date of filing the income tax return.

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History of this topic

Direct Tax Weekly Round-Up: 23 To 29 June 2024
5 months, 3 weeks ago

Direct Tax Weekly Round-Up: 23 To 29 June 2024

Live Law  

Calcutta High Court Raising Issue Of Non-Service Of Bills At Appellate Stage Not Permissible; Calcutta High Court Upholds 50% Interest Waiver On Property Tax Citation: 2024 LiveLaw 149 Case Title: Saila Ghosh Versus State of West Bengal The Calcutta High Court, while dismissing the appeal of the assessee, upheld the 50% waiver of the interest on property tax. ITAT Orders …

Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT
7 months, 2 weeks ago

Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.The bench of …

Contribution Collected From Employees If Not Deposited Within Due Dates Prescribed As Per PF & ESIC Act, Is Dis-Allowable: Mumbai ITAT
9 months, 1 week ago

Contribution Collected From Employees If Not Deposited Within Due Dates Prescribed As Per PF & ESIC Act, Is Dis-Allowable: Mumbai ITAT

Live Law  

The Mumbai ITAT recently clarified that mere deposit of employee's contribution before due date of filing return of income as per Section 139 of Income tax Act, will not make it eligible for deduction. Vs. CIT 143 taxmann.com 178, the Bench of Prashant Maharishi and Narendra Kumar Choudhry reiterated that “such sum collected from employees if not deposited within the …

EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday
1 year, 2 months ago

EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday

Live Law  

The Delhi High Court has allowed the deduction for the employee’s contribution towards the provident fund as the due date fell on a national holiday.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that since the due date fell on a date that was a national holiday, the deposit could have been made by the respondent or …

Employer Cannot "Lure" Employee By Provident Fund As It Is Statutory Deduction, Offence Of Cheating Not Attracted Upon Non-Remittance: Karnataka HC
1 year, 10 months ago

Employer Cannot "Lure" Employee By Provident Fund As It Is Statutory Deduction, Offence Of Cheating Not Attracted Upon Non-Remittance: Karnataka HC

Live Law  

The Karnataka High Court has said that contribution towards provident fund by an employee is a statutory deduction and non remittance of it by the employer in the employee’s account maintained with the Provident Fund Organisation, cannot attract the offence of cheating. Therefore, the cognizance for offence punishable under Section 420 of the IPC is recklessly taken, as none of …

Employees' Contribution To PF Cannot Be Disallowed Merely On The Basis Of Auditor's Statement: ITAT
2 years ago

Employees' Contribution To PF Cannot Be Disallowed Merely On The Basis Of Auditor's Statement: ITAT

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has deleted the addition made by the Centralised Processing Centre towards employees' contributions to the Provident Fund based on the tax auditor's statement reporting the delay in employee contribution remittances.The two-member bench of Aby T. Varkey and M. Balaganesh has observed. The Mumbai Bench of the Income Tax Appellate Tribunal has …

Employees' Contribution To PF And ESI Should Be Remitted Before The Due Date To Allow Income Tax Deduction: ITAT
2 years, 1 month ago

Employees' Contribution To PF And ESI Should Be Remitted Before The Due Date To Allow Income Tax Deduction: ITAT

Live Law  

The Banglore Bench of the Income Tax Appellate Tribunal has held that the employees' contribution to PF and ESI should be remitted before the due date for it to be allowable under Section 43B of the Income Tax Act.The two-member bench of George George K and Laxmi Prasad Sahu relied on the decision of the Supreme Court in the case …

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court
2 years, 4 months ago

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court

Live Law  

The Delhi High Court has allowed the assessee- TV Today Network Ltd.'s claims for deduction of expenses in nature of 'consumption incentive' offered to the advertisers for booking more The Bench, consisting of Justices Manmohan and Manmeet Pritam Singh Arora, reiterated that the 'due date', in case of delay by the assessee in depositing the employees' contribution to Provident Fund …

Belated Deposit Of PF And ESI Contribution Of Employees Cannot Be Added To Employer's Taxable Income: ITAT Delhi
2 years, 9 months ago

Belated Deposit Of PF And ESI Contribution Of Employees Cannot Be Added To Employer's Taxable Income: ITAT Delhi

Live Law  

The Single Bench of Delhi ITAT, consisting of judicial member Kul Bharat, has ruled that belated payment of employees' contribution to the Provident Fund and State Insurance Scheme cannot be added to the employer's taxable income as deemed income, if the said deposits are made before the due date of filing the income tax return under the Income Tax Act, …

Now, if Your Employer Delays Your Deposit or PF, They Will Have to Forego Deduction: Govt
3 years, 10 months ago

Now, if Your Employer Delays Your Deposit or PF, They Will Have to Forego Deduction: Govt

News 18  

The government on Monday said the employers who delay the deposit of workers' share of social security contributions like employees' provident fund will not be able to claim the amount as deduction from their income. These social security schemes provide the benefit of provident fund, group insurance and pension to organised sector workers which mainly include private and public sector …

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