Provident Fund

Delayed Deposit of EPF & ESI- Whether Allowable

Income Tax - After the decision of SC in Check mate Services Pvt. Ltd. vs. CIT order dated 12.10.22, the legal position is now settled that the delayed deposit of employees contribution shall be held as deemed income u/s. 2(24) of the income tax act....

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Analysis of SC verdict on allowability of delayed payment of Employee PF Contribution

Income Tax - Short Write Up on Impact Analysis of Hon’ble Apex court recent verdict in case of : CHECKMATE SERVICES PVT LTD VS CIT-1 in CIVIL APPEAL 2833/2016 order dated 12 October 2022 On issue of : Allowability/treatment of ‘delayed’ Employee PF Contribution payment in hands of assessee under provisions of Income Tax Act (PGBP/Bus...

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Provident Fund (PF): A welfare scheme for Employee

Income Tax - Every working individual knows about the CTC (cost to the company) as salary, and some people don’t worry about various deductions after seeing them in CTC. Still, some become skeptical after seeing that a chunk of the salary will be deducted as Provident Fund(PF) or EPF (Employees Provident Fund). The primary goal of all financial ...

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Deduction of Employee’s & Employer’s contribution to PF

Income Tax - Deduction, disallowance and reallowance of Employee’s and Employer’s contribution to PF under the Income Tax Act, 1961 According to the provisions of provident act of India, there is requirement of contribution to the provident fund on part of both the Employer and Employee. Both contributes at equal rates. The Employer deducts an amo...

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Provident Fund and Employee State Insurance – A detailed note

Income Tax - All the tax professionals are very familiar with the terms, contributions to various funds (i.e., provident fund, Employee state insurance, superannuation funds, gratuity fund or any other fund etc.) by employees as well as employers as per defined percentage in accordance with the respective law. However, this seems as a mandatory requir...

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Ceiling of Rs. 5 Lakh on subscription to GPF in a financial year

Income Tax - Monthly subscription by a subscriber under GPF during a financial years together with amount of arrear subscriptions deposited shall not exceed Rupees Five Lakh...

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8.10% rate of interest for EPF subscribers for year 2021-22

Income Tax - Central Board recommended 8.10% annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2021-22. The interest rate would be officially notified in the government gazette following which EPFO would credit the rate of interest into its subscribers’ accounts....

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EPFO Payroll data: EPFO added 13.95 lakh net subscribers in Nov, 2021

Income Tax - The provisional payroll data of EPFO released on 20th January 2022 highlights that EPFO has added 13.95 lakh net subscribers during the month of November 2021, showing an increase of around 2.85 lakh net additions over the previous month of October, 2021 with a growth rate of 25.65%....

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Principal Employers can now View EPF Compliances of their Contractors

Income Tax - Ministry of Labour & Employment (Government of India) EPFO LAUNCHES ELECTRONIC FACILITY FOR PRINCIPAL EMPLOYERS TO VIEW EPF COMPLIANCES OF THEIR CONTRACTORS Now, EPFO registered employer engaging employees through contractor(s) can add the details of contractor(s) & contract employees at EPFO’s Unified Portal: https://unifie...

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EPFO allows its members to avail second COVID-19  advance

Income Tax - To support its subscribers during the second wave of COVID-19 pandemic, EPFO has now allowed its members to avail second non-refundable COVID-19 advance....

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Delayed payment in respect of employees contribution to PF & ESI is not allowable

BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack) - BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack) Admittedly, the Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd(supra) has categorically held that the employees contribution to PF and ESI to the extent it is not paid within due date prescribed under the PF Act, is not allowable ...

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PF/ESI/EPF paid before filing return of income allowable

PCIT Vs Pro Interactive Service (India) Pvt. Ltd (Delhi High Court) - PCIT Vs Pro Interactive Service (India) Pvt. Ltd (Delhi High Court) In view of the judgments of the Division Bench of Delhi High Court in Commissioner of Income-Tax versus Aimil Limited, (2010) 321 ITR 508 (Del) the issue is covered against the Revenue and, therefore, no substantial question of law ...

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ITAT allowed deduction of PF/ESI/EPF deposited late but paid before ITR filing

Ajashy Engineering Sales Pvt. Ltd. Vs ITO (ITAT Delhi) - Ajashy Engineering Sales Pvt. Ltd. Vs ITO (ITAT Delhi) ITAT held that AO was not justified in denying the deduction claimed by the assessee on account of late deposit of PF/ESI/EPF, albeit before filing the return of income. Admittedly in the matter, the Revenue had not contended that the assessee h...

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Interim relief granted to workers is covered within the purview of basic wages

Mangalam Publications (India) Pvt. Ltd. Vs Employees Provident Fund (Kerala High Court) - Kerala High Court held that interim relief granted to the workers at 20% of the wages of the works will come within the purview of the definition of basic wages as mentioned in Section 2(b) of the the Employees' Provident Funds and Miscellaneous Provisions Act, 1952....

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EPF will be applicable even when wages are paid to employee via contractor

M/S Express Publications (Madurai) Private Limited Vs Union of India (Karnataka High Court) - Karnataka High Court held that any person who is paid wages by the employer would become an employee under the EPF Act whether the said payment is done directly or through a contractor and accordingly EPF would be applicable....

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Rs. 5 Lakh Ceiling on subscription to GPF in a financial year

HRD No. 1(71)2020/Misc./701 - (10/11/2022) - Sum of the monthly subscription by a subscriber under the GPF during a financial years together with the amount of arrear subscriptions deposited in that financial year shall not exceed the threshold limit of Rupees Five Lakh....

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EPFO: Withdrawal of prosecutions cases related to non-submission of KYC

File No. Compliance/Pollcy/WithdrawalofProsecutionCases/2022/10863 - (26/09/2022) - EPFO Regional Office to consider application for withdrawal of prosecutions cases related to non-submission of KYC if employer request for withdrawal of prosecution by application before RPFC/Competent court...

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Relief from levy of penal damages for delay in deposit of dues / filing of ECR for wage month May, 2021

No. C-I/MISC./Pandemic Relief/2021/Vol-I/ - (31/08/2022) - EMPLOYEES 7PROVIDENT FUND ORGANISATION (Ministry of Labour & Employment Govt of India) Head Office Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Deihi —110 066. No. C-I/MISC./Pandemic Relief/2021/Vol-I/ | Date: 31.08.21 To, All ACC in charge of Zones, All RPFCs in-charge of ROs, All OI...

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7.1% Interest on Deposit under non-government PF, superannuation & gratuity

Notification No. F.No. 5 (4)-B(PD)/2021 - (14/07/2022) - Govt notifies 7.1% interest rate on Deposit made under non-government PF, superannuation and gratuity with effect from 1st July, 2022 to 30th September, 2022. Revised GPF Interest Rate is applicable  on following funds- i) The General Provident Fund (Central Services); ii) The Contributory Providen...

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Govt announces 8.10% Interest on EPF for the year 2021-22

No. INV-11/2/2021-INV/4670 - (03/06/2022) - EPFO, HEAD OFFICE MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA BHAVISHYA NIDHI BHAWAN, 14, BHIKAIJI LAMA PLACE, NEW DELHI 110066 www.epfindia.gov.in No. INV-11/2/2021-INV/4670 | Dated: Date: 03.06.2022 To, All ACC (HQ)/ ACC- In-charge of Zonal Offices All RPFC-I/ Officers-In-Charge, Reg...

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Recent Posts in "Provident Fund"

Delayed payment in respect of employees contribution to PF & ESI is not allowable

BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack)

BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack) Admittedly, the Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd(supra) has categorically held that the employees contribution to PF and ESI to the extent it is not paid within due date prescribed under the PF Act, is not allowable u/s.36(1)(va) of the Act. […]...

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Delayed Deposit of EPF & ESI- Whether Allowable

After the decision of SC in Check mate Services Pvt. Ltd. vs. CIT order dated 12.10.22, the legal position is now settled that the delayed deposit of employees contribution shall be held as deemed income u/s. 2(24) of the income tax act....

Read More
Posted Under: Corporate Law |

PF/ESI/EPF paid before filing return of income allowable

PCIT Vs Pro Interactive Service (India) Pvt. Ltd (Delhi High Court)

PCIT Vs Pro Interactive Service (India) Pvt. Ltd (Delhi High Court) In view of the judgments of the Division Bench of Delhi High Court in Commissioner of Income-Tax versus Aimil Limited, (2010) 321 ITR 508 (Del) the issue is covered against the Revenue and, therefore, no substantial question of law arises for consideration in this [&helli...

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ITAT allowed deduction of PF/ESI/EPF deposited late but paid before ITR filing

Ajashy Engineering Sales Pvt. Ltd. Vs ITO (ITAT Delhi)

Ajashy Engineering Sales Pvt. Ltd. Vs ITO (ITAT Delhi) ITAT held that AO was not justified in denying the deduction claimed by the assessee on account of late deposit of PF/ESI/EPF, albeit before filing the return of income. Admittedly in the matter, the Revenue had not contended that the assessee has deposited the contribution after [&he...

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Interim relief granted to workers is covered within the purview of basic wages

Mangalam Publications (India) Pvt. Ltd. Vs Employees Provident Fund (Kerala High Court)

Kerala High Court held that interim relief granted to the workers at 20% of the wages of the works will come within the purview of the definition of basic wages as mentioned in Section 2(b) of the the Employees' Provident Funds and Miscellaneous Provisions Act, 1952....

Read More

Rs. 5 Lakh Ceiling on subscription to GPF in a financial year

HRD No. 1(71)2020/Misc./701 10/11/2022

Sum of the monthly subscription by a subscriber under the GPF during a financial years together with the amount of arrear subscriptions deposited in that financial year shall not exceed the threshold limit of Rupees Five Lakh....

Read More

EPF will be applicable even when wages are paid to employee via contractor

M/S Express Publications (Madurai) Private Limited Vs Union of India (Karnataka High Court)

Karnataka High Court held that any person who is paid wages by the employer would become an employee under the EPF Act whether the said payment is done directly or through a contractor and accordingly EPF would be applicable....

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Employees’ contribution to EPF allowable, if paid before due date of return

CIT, Udaipur Vs Udaipur Dugdh Utpadak Sahakari Sangh Limited (Rajasthan High Court)

CIT, Udaipur Vs Udaipur Dugdh Utpadak Sahakari Sangh Limited (Rajasthan High Court) While completing the assessment under Section 143(3) of the Income Tax Act, 1961  the Assessing Officer (AO) noticed that the assessee had deposited payment of Rs.14,60,412/- in the PF fund and Rs.973/- in the ESI fund with delay that is the said payments...

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Ceiling of Rs. 5 Lakh on subscription to GPF in a financial year

Monthly subscription by a subscriber under GPF during a financial years together with amount of arrear subscriptions deposited shall not exceed Rupees Five Lakh...

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Posted Under: Corporate Law |

Delayed payment of employees contribution towards PF/ESIC not allowable: SC

Checkmate Services P. Ltd Vs CIT (Supreme Court of India)

Checkmate Services P. Ltd Vs CIT (Supreme Court) The factual narration reveals two diametrically opposed views in regard to the interpretation of Section 36(1)(va) on the one hand and proviso to Section 43(b) on the other. If one goes by the legislative history of these provisions, what is discernible is that Parliament’s endeavour in i...

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