Is late payment of ESI and PF disallowance?

Is late payment of ESI and PF disallowance?

In other words, the late deposit of contribution received from employees towards Employees’ Provident Fund prior to AY 2021-22 will not attract any disallowance and the same will be allowed under section 43B for ESI/EPF contributions received from employees.

What is Section 36 A?

Section 36A. Declaration and management of a conservation reserve.

Is interest on PF allowable or not?

The payment made by the assesses in this case, although termed as interest, in fact, represents damages under Section 14B of the Act and hence is not allowable as a deduction.

What is 43B disallowance?

Section 43B of the Income Tax Act states that certain statutory expenses can only be claimed in the year of payment. Section 43B provisions disallow the sum not paid in the financial year or before the due date of filing tax returns under the head “Profits and Gains of Business or Profession”.

What is Section 40 A of Income Tax Act?

(i) 5 any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938 ), royalty, fees for technical services or other sum chargeable under this Act, which is payable outside India, on which tax has not been paid or deducted under Chapter XVII- B: Provided that where in …

What is Section 40 a IA?

Similarly, as per section 40(a)(ia), any sum payable to a resident, which is subject to deduction of tax at source, would attract 30% disallowance if it is paid without deduction of tax at source or if tax is deducted but is not deposited with the Central Government till the due date of filing of return.

Which section deals with declaration and management of a Conservation Reserve?

Section 36A
Section 36A deals with the declaration and management of a conservation reserve.

Is PF settlement taxable?

This is the amount contributed by you to your EPF. This portion of your withdrawal is not taxable. However, if you have claimed deduction under section 80C on your contribution in earlier years, you may have to pay additional tax as if 80C was not claimed by you for those years.

Is PF mandatory for salary above 15000?

As per the rules, in EPF, employee whose ‘pay’ is more than Rs 15,000 a month at the time of joining, is not eligible and is called non-eligible employee. Employees drawing less than Rs 15,000 a month have to mandatorily become members of the EPF.

What is 40A disallowance?

( Expenses or Payments not Deductible) Expenses or Payments Not Deductible where such Payments are made to Relatives [Section 40A(2)]: Disallowance of 100% of Expenditure if payment is made by any mode other than Account Payee Cheque or Draft [Section 40A(3)(a)]:

What is section 37 of Income-tax Act?

Section 37 of the Income-tax Act is amended to provide that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purposes of business or profession and no deduction or allowance shall be made in respect of such …

What is disallowance u/s 40?

a) Disallowance of expenditure: As per section 40(a)(i) of the Income-tax Act, any sum (other than salary) payable outside India or to a non-resident, which is chargeable to tax in India in the hands of the recipient, shall not be allowed to be deducted if it is paid without deduction of tax at source or if tax is …

What is the meaning of Section 36 ( 1 ) ( VA )?

… section 36 ( 1 ) ( va ), and explanation to section 36 ( 1 ) ( va ), if the employees contribution is credited after the due date mentioned in the particular Act but credited on or before th…amendment in section 43B of the Act, vide Finance Act, 2003 would operate retrospectively w.e.f. 1 /4/1988 or not.

Is the IT Act 36 ( 1 ) ( VA ) applicable to section 43B?

…different contributions and therefore, the provision applicable with respect to section 43B cannot be made applicable with respect to section 36 ( 1 ) ( va) of the IT Act.

When to not deduct ESIC contribution under 36 ( 1 ) ( VA )?

Considering section 36 (1) (va) of the Income Tax Act, assessee shall not be entitled to deduction of such amount in computing the income referred to in section 28 if such sum is not credited by the assessee to the employees’ account in the relevant fund or funds on or before the due date as per explanation to section 36 (1) (va) of the Act –

Why was section 36 of the Act vide Finance Act 1987 inserted?

Clause (va) of sub-section (1) of Section 36 of the Act was inserted to the Act vide Finance Act 1987 as a measures of penalizing employers who mis-utilize employee’s contributions.