TMI BlogRationalisation of various Provisions Payment by employer of employee contribution to a fund on or before due dateX X X X Extracts X X X X X X X X Extracts X X X X ..... n of the income. Sub-clause (x) to the said clause provide that income to include any sum received by the assessee from his employees as contribution to any provident fund or superannuation fund or any fund set up under the provisions of ESI Act or any other fund for the welfare of such employees. Section 36 of the Act pertains to the other deductions. Sub-section (1) of the said section provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tract of service or otherwise. Section 43B specifies the list of deductions that are admissible under the Act only upon their actual payment. Employer's contribution is covered in clause (b) of section 43B. According to it, if any sum towards employer's contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of the employees is actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the labour welfare laws. Hence, it needs to be stressed that the employer s contribution towards welfare funds such as ESI and PF needs to be clearly distinguished from the employee s contribution towards welfare funds. Employee s contribution is employee own money and the employer deposits this contribution on behalf of the employee in fiduciary capacity. By late deposit of employee contributi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been applied to a sum received by the assessee from any of his employees to which provisions of sub-clause (x) of clause (24) of section 2 applies. These amendments will take effect from 1st April, 2021 and will accordingly apply to the assessment year 2021-22 and subsequent assessment years. [Clauses 8 and 9] Full Text : Budget 2021-22 + FINANCE Bill, 2021 - FAQ - Frequen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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