Decoding Budget 2021 :- EMPLOYEE CONTRIBUTION TO PF IF DEPOSITED LATE
Previous Law:- Employee contribution to PF needs to be deposited by employer within 15 days of next month. Grace period was also abolished in PF Deposit. Similarly ESI needs to be paid within 21 days of next month. There were cases of delay in depositing the same where the expenditure was disallowed u/s 43B if the same was not deposited within due date of filing of return of income.
Proposed Change in Bill:- Now even 1 day delay in depositing PF, ESI will disallow the expenditure.
Example:- April month PF was deposited late with interest on 16th May . The amount of Employee PF contribution will be disallowed and added to Income.
