Home › CA Inter › taxation › Profits and Gains of Business or Profession › Employees' contributions to provident fund recov…
Employees' contributions to provident fund recovered from salaries are deductible to the employer under section 36(1)(va) only if credited to the fund:
ABefore the due date for filing the return under section 139(1)
BWithin the previous year in which the salary was actually paid
CBefore the end of the month following the month of recovery
DOn or before the due date specified under the relevant fund's law
Answer & Solution
Correct answer: D. On or before the due date specified under the relevant fund's law
1. Section 36(1)(va) allows the employer a deduction for employees' contributions only when credited on or before the due date under the RELEVANT Act — for the EPF Scheme, within 15 days of the close of the month.
2. Explanation 5 to section 43B clarifies that the section 43B relaxation (payment by the return due date) does not and never did apply to employees' contributions.
3. Option A is the trap: that relaxation saves only the EMPLOYER'S own contribution under section 43B(b), not the employees' share.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 69_
Related questions
Which statement about the deductibility of Securities Transaction Tax (STT) and CommoditieA firm's net profit is Rs 17,00,000 before deducting partner salary of Rs 9,60,000, deprecA tyre manufacturer (opted out of the default regime) instals plant and machinery of Rs 12Unpaid interest of Rs 45,00,000 due to a State Financial Corporation and a bank was converA trader's turnover for P.Y. 2025-26 is Rs 8 crore. Cash receipts are 3 per cent of total An eligible 44AD assessee has turnover of Rs 2,98,50,000, of which Rs 14,00,000 was receivA car purchased on 10.8.2022 for Rs 5,25,000 for personal use was brought into professionaA company claimed Rs 50,00,000 under section 35AD for a warehouse building in A.Y. 2025-26