Can Late Payments for E.S.I. and P.F. Be Deducted if Made Before I.T.R. Due Date?

Hello,

My query is in respect of Sec. 36(1)(5a) and Sec. 2(24). In respect of payment on account of P.F. and E.S.I. by the company delayed but paid before submission of I.T.R. on the due date as prescribed under the Income Tax Act.

"Shall the late sum paid on account of E.S.I. and P.F. be allowed or not if the payment is made within the relevant financial year?"

Thank you.

Dear,

If a company has paid ESI and PF after the due date, the company will not get an exemption of income tax on that amount.

Thanks,
JS Malik

Hi Malik,

This is Rajasekar, working with an IT company. We have given the PF cheque (Citi Bank Cheque) to my consultant on 12th March (Friday), and they have deposited it on the same day with SBI bank. Since it's another bank, it would have taken two days for clearance, so my cheque would have cleared on 16th March. In the challan, PF seal is dated 17th March.

My questions are:
1. Will I get an exemption from income tax on this amount?
2. Was this a late payment?

Kindly suggest to me.

Regards,
Rajasekar

Dear,

You have made the payment on time, and this is not a late payment. You should be eligible for an exemption in income tax provided you have proof of depositing it on the 12th.

Thanks,
J.S. Malik

Thank you, Mr. Malik. However, Section 43(b) of the Income Tax Act provides an exception if the payment is made in the relevant previous year on an accrual basis, meaning the year in which the liability is incurred. In that case, I believe the exemption should be allowed under Section 43(b). Could you please clarify?

Thank you.
Regards,
Vinod Kapil

Dear friends,

I want to withdraw PF as I have left my previous company and joined a new one. Although I am aware that it requires Form 10C and Form 19, as well as an SSN form for the PF withdrawal, before my previous company, I was working for another company. When I joined my previous company, I withdrew my PF from the first company for which I filled all necessary forms, including the SSN form.

Now, I want to withdraw or transfer (whichever is less time-consuming) PF from my previous organization. Do I need to fill out the SSN form again, as I heard it is a one-time form? I have not received my SSN number yet.

Please help. Any advice will be welcome.

Thanks and regards,
ractaan