Financial Daily from THE HINDU group of publications
Wednesday, Dec 25, 2002
Financial Daily from THE HINDU group of publications Wednesday, Dec 25, 2002 |
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Opinion
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Letters Labour dues
As per Section 43B of the Income-Tax Act, deduction for statutory payments relating to labour, such as Employees Provident Fund (EPF) dues and ESI dues, are allowed if they are paid during the financial year. If such labour related dues are paid belatedly, then the deductions for such payments under Section 43B of the Income-Tax Act is not allowed. However, the Kelkar Committee has stated that the disallowance of such belated payments is too harsh a punishment for delays in payment, and has recommended deduction for delayed payment of statutory liability relating to labour in the year of payment of such dues, even if they were paid belatedly. This will encourage the unscrupulous employers to make deliberate delayed remittances of labour-related dues, and may cause undue hardship to the working class. Disallowance of deductions under Section 43B of the Income-Tax Act should, therefore, be continued in case of belatedly remittances of labour-related dues. C. Ramesh Keeramangalam (TN)
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