Provident Fund

Tax implication on delay deposit of PF/ESIC Contribution:

Income Tax - In the intimation processed u/s 143(1) of Income Tax Act, 1961, the Centralize Processing Center makes addition of income as per the amount reported in certain clauses of Tax Audit Report. Assessee is left with no choice but to go for appeal with higher authorities.  We have noticed that the disallowance includes along various other [&he...

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PF tax-exemption limit hiked to Rs 5 lakh, which employees stand to benefit

Income Tax - FM increased the deposit threshold limit to Rs 5 lakh per annum in provident fund for which interest would continue to be tax-exempt, if there is no employer contribution. It was made clear that the threshold limit will not be enhanced in the cases where employer is contributing towards EPF....

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Taxability of Interest on P.F. Contribution

Income Tax - The Lok Sabha has passed the Finance Bill, 2021 on March 23, 2021, with finance minister Nirmala Sitharaman introducing 127 amendments with a view to boost ease of doing business and easing compliance burden. Among the major changes is a tweak in the proposal to tax income on P.F. contribution above Rs. 2.50 lakhs in […]...

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Tax on income out of excess employer contribution to specified funds – Computation methodology prescribed

Income Tax - Tax on income out of excess employer contribution to specified funds – Computation methodology prescribed The Finance Act 2020 introduced a new provision under the Income-tax Act, 1961 (the Act) by virtue of which employer contribution exceeding Rs. 7.5 lakhs p.a. (i.e. excess contribution) in aggregate to the following funds is now tax...

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Tax on Interest on Employee Contribution to PF over Rs 2.5 Lacs

Income Tax - Taxability of Interest on Employee Contribution to PF over Rs 2.5 Lacs in a Financial Year (New Provision Proposed in Union Budget to be effective from 1st April 2021) Background of Provident Fund Employee Provident Fund is the fund the purpose of which is to provide the employee social security for him and his family with the […...

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EPFO extends social security benefits to J&K & Ladakh subscribers

Income Tax - EPFO stands committed to serve its stakeholders in J&K and Ladakh, who are covered under EPF& MP Act, for providing social security cover in the form of provident fund, pension and insurance benefits to its members in a hassle-free manner....

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8.50 % rate of interest for EPF subscribers for year 2020-21

Income Tax - The Central Board recommended 8.50% annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2020-21. The interest rate would be officially notified in the government gazette following which EPFO would credit the rate of interest into the subscribers’ accounts....

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EPFO extends time limit for submission of Jeevan Pramaan Patra

Income Tax - EPFO has extended the time limit up to 28th February 2021 for submission of Life Certificate (Jeevan Pramaan Patra-JPP) in respect of the Pensioners drawing pension under EPS 1995 and whose Life certificate is due in any month till February 28, 2021. Presently a Pensioner can submit JPP anytime during the year upto 30th November,  which ...

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EPFO’s clarification on misleading article published in newspaper

Income Tax - EPFO) stated that an article was published in a section of media on 18.11.2020 under the caption EPFO subscribers, firms down in Oct. In this regard, EPFO has categorically clarified that the information contained in the article is incorrect and unsubstantiated....

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Whatsapp helpline Number of Registered EPFO Offices Across India

Income Tax - The Employees’ Provident Fund Organisation (EPFO), is an organisation tasked to assist the Central Board of Trustees. Employees’ Provident Fund is a statutory body established by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry of Labour and Empl...

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Employees contribution to ESIC & PF allowable when payment is made

DCIT Vs Dee Development Engineers Ltd. (ITAT Delhi) - DCIT Vs Dee Development Engineers Ltd. (ITAT Delhi) The assessee company has not deposited the employees’ contribution within the due date which is prescribed under the said statute i.e. Provident Fund and ESIC. This issue is dealt by the Hon’ble Delhi High Court in case of CIT vs. M/s Bharat Ho...

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PF & ESI contribution allowable if Paid before Tax return due date

Shishir Kumar Das Vs DCIT (ITAT Hyderabad) - Shishir Kumar Das Vs DCIT (ITAT Hyderabad) Decision of the Hon’ble Supreme Court in the case of CIT vs. Alom Extrusions Ltd is applicable to both the employer as well as employee’s contribution to Provident Fund and ESI and if the assessee has not remitted the amount collected from the employees...

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Employees contribution to EPF & ESIC allowable if paid within relevant due date

PCIT Vs Orchid Pharma Ltd. (Madras High Court) - PCIT Vs Orchid Pharma Ltd. (Madras High Court) Employee’s contribution should be paid within the due date as provided in the related statutes to be allowed as deduction under Section 36(1)(va) of the Act.  A Division Bench of the Kerala High Court in the case of CIT Vs. M/s.Merchem Ltd. [repo...

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Contractual employees entitled to Employee Provident Fund benefit: SC

Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana (Supreme Court) - Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana (Supreme Court) Members of the Respondent ­Union have been in continuous employment with the Company for long periods of time. They have been receiving wages/salary directly from the Company without the involvement of any contractor si...

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Employees’ contribution to EPF & ESIC deposited beyond due date not allowable

Pr. CIT Vs Orchid Pharma Ltd. (Madras High Court) -  Employees’ contribution to EPF and ESIC deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the return of income tax under section 139(1)....

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Exclusion of employees of Regional Rural Banks from purview of EPF & MP Act, 1952

Notification No. Pension.I/17(3)19/RRB - (15/02/2021) - It is hereby informed that the matter regarding exclusion of employees of Regional Rural Banks from the purview of EPF & MP Act, 1952 has been examined at the Head Office and it is observed that RRBs got excluded from purview of EPF & MP Act, 1952 in the consequence of judgement dated 25.4.2018 of H...

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EPFO guideline for correction in name father/spouse/gender

Circular No. WSU/KYC/Correction process (E-15189) /2874 - (12/02/2021) - Correction in member profile has been allowed to rectify the errors in name, father/husband name, DOB and gender. However, it has been observed that complete name and profile change has been made in certain cases leading to fraudulent withdrawals....

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Deployment of electronic facility at Employer Interface of EPFO’s Unified Portal

Notification No. C-I/011(16)2020-21/ABRY/1179 - (01/02/2021) - Deployment of electronic facility at Employer Interface of EPFO’s Unified Portal for Principal Employers to view EPF compliances of their Contractors & contract workers EMPLOYEES PROVIDENT FUND ORGANISATION (Ministry of Labour & Employment, Govt. of India) Bhavishya Nidhi Bhawan, 14, Bhika...

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Instructions for conduct of quasi judicial proceedings under EPF & MP Act, 1952

Circulars No. C-I/3(28)2016/7A & 14B/1189 - (19/01/2021) - All quasi judicial proceedings under the EPF & MP Act, 1952 for which functionality has been created in the 'e proceedings portal' must be conducted through the portal. If conduct of proceedings is not possible in any case through the portal for functional or technical reasons must be brought to the...

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EPFO: Attachment of bank accounts for enforcing appearance

File No: LC 4(42) 2020/ E- 26035/794 - (14/09/2020) - Instances have been noticed in which the officers conducting inquiries u/s 7A have issued orders to attach/freeze bank accounts of the establishments/ personal accounts of the employers for alleged non-appearance in such inquiries. Such practices have attracted a lot of adverse observations from Con...

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Recent Posts in "Provident Fund"

Employees contribution to ESIC & PF allowable when payment is made

DCIT Vs Dee Development Engineers Ltd. (ITAT Delhi)

DCIT Vs Dee Development Engineers Ltd. (ITAT Delhi) The assessee company has not deposited the employees’ contribution within the due date which is prescribed under the said statute i.e. Provident Fund and ESIC. This issue is dealt by the Hon’ble Delhi High Court in case of CIT vs. M/s Bharat Hotels Ltd. 410 ITR 417 […]...

Read More

Tax implication on delay deposit of PF/ESIC Contribution:

In the intimation processed u/s 143(1) of Income Tax Act, 1961, the Centralize Processing Center makes addition of income as per the amount reported in certain clauses of Tax Audit Report. Assessee is left with no choice but to go for appeal with higher authorities.  We have noticed that the disallowance includes along various other [&he...

Read More
Posted Under: CA, CS, CMA |

PF tax-exemption limit hiked to Rs 5 lakh, which employees stand to benefit

FM increased the deposit threshold limit to Rs 5 lakh per annum in provident fund for which interest would continue to be tax-exempt, if there is no employer contribution. It was made clear that the threshold limit will not be enhanced in the cases where employer is contributing towards EPF....

Read More
Posted Under: CA, CS, CMA |

Taxability of Interest on P.F. Contribution

The Lok Sabha has passed the Finance Bill, 2021 on March 23, 2021, with finance minister Nirmala Sitharaman introducing 127 amendments with a view to boost ease of doing business and easing compliance burden. Among the major changes is a tweak in the proposal to tax income on P.F. contribution above Rs. 2.50 lakhs in […]...

Read More
Posted Under: CA, CS, CMA |

Tax on income out of excess employer contribution to specified funds – Computation methodology prescribed

Tax on income out of excess employer contribution to specified funds – Computation methodology prescribed The Finance Act 2020 introduced a new provision under the Income-tax Act, 1961 (the Act) by virtue of which employer contribution exceeding Rs. 7.5 lakhs p.a. (i.e. excess contribution) in aggregate to the following funds is now tax...

Read More
Posted Under: CA, CS, CMA |

Tax on Interest on Employee Contribution to PF over Rs 2.5 Lacs

Taxability of Interest on Employee Contribution to PF over Rs 2.5 Lacs in a Financial Year (New Provision Proposed in Union Budget to be effective from 1st April 2021) Background of Provident Fund Employee Provident Fund is the fund the purpose of which is to provide the employee social security for him and his family with the […...

Read More
Posted Under: CA, CS, CMA |

EPFO extends social security benefits to J&K & Ladakh subscribers

EPFO stands committed to serve its stakeholders in J&K and Ladakh, who are covered under EPF& MP Act, for providing social security cover in the form of provident fund, pension and insurance benefits to its members in a hassle-free manner....

Read More
Posted Under: CA, CS, CMA |

8.50 % rate of interest for EPF subscribers for year 2020-21

The Central Board recommended 8.50% annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2020-21. The interest rate would be officially notified in the government gazette following which EPFO would credit the rate of interest into the subscribers’ accounts....

Read More
Posted Under: CA, CS, CMA |

Tax on Interest on EPF

In order to rationalize tax exemption for income earned by High income employees, Budget 2021 has proposed to tax interest earned on contributions made to Provident fund above 2.5lakhs by employee in a year from 01/04/2021....

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Posted Under: CA, CS, CMA |

Tax on Interest on EPF Contribution exceeding Rs 2.5 Lakh

Interest of more than Rs 2.5 Lakh earned annually from contribution to Employees Provident fund (EPF) or Government Provident Fund (GPF) will not be taxed retrospectively, Expenditure Secretary TV Somanathan clarified....

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Posted Under: CA, CS, CMA |

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