By amending Section 2 (24), a new sub-clause (x) has been introduced. Under this sub-section any amount received by employer from his employees as their contribution to any provident fund, or superannuation fund, or any fund set up under E.S.I. Act 1948 or any other fund for the welfare of such employees shall be treated as income of the assessee and shall be credited to P & LA/c of the year only if such sum is credited/paid by the empolyer to the employee’s account in the relevant fund on or before the due date of crediting such contribution prescribed under the relevant Act.
Assessee can debit to his P & L A/c such contribution of employees towards provident fund, superannuation fund, E.S.J. fund or other fund created for welfare of employees.
This deduction will be allowed only if such amount is credited to the employee’s account in relevant fund on or before due date.
Due date means the date by which assessee is required to credit such contribution in the relevant fund as prescribed under respective fund.