Section 36(1)(va) of the Income Tax Act

Income-tax Act, 2025: ss.29, 30, 31, 32

Section 36(1)(va) falls under section 36 of the Income-tax Act, 1961, which corresponds to section 29 (Deductions related to employee welfare), section 30 (Deduction on certain premium), section 31 (Deduction for bad debt and provision for bad and doubtful debt) and section 32 (Other deductions) of the Income-tax Act, 2025.

Read section 29 of the 2025 ActRead section 30 of the 2025 ActRead section 31 of the 2025 ActRead section 32 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 36(1)(va) is CIT v. AIMIL Ltd. (321 ITR 508), cited in 1,629 of the 6,054 judgments on BharatTax that turn on this section.

Leading authorities on Section 36(1)(va)

CIT v. AIMIL Ltd.
321 ITR 508 · 2010 · High Court
1,629
citing judgments

Employee contributions to PF and ESIC, deposited beyond the due date under the respective Acts but within the due date for filing the income tax return under Section 139(1), are allowable deductions under Section 36(1)(va). Such disallowance cannot be made during processing under Section 143(1).

Checkmate Services Pvt. Ltd. v. CIT
143 Taxmann.com 178 · 2022 · Supreme Court
1,392
citing judgments

Employee contributions to provident fund and ESI deposited by an employer beyond the due dates prescribed under the respective special Acts are not allowable as a deduction under section 36(1)(va) of the Income-tax Act, 1961. Such disallowance can be made during processing under section 143(1).

CIT v. Alom Extrusions Ltd.
319 ITR 306 · 2009 · Supreme Court
1,344
citing judgments

A proviso inserted into a section to remedy unintended consequences, make the section workable, or supply an obvious omission must be read retrospectively in operation to give effect to the section as a whole.

CIT v. Gujarat State Road Transport Corporation
366 ITR 170 · 2014 · High Court
1,158
citing judgments

Employees' contributions to welfare funds, such as provident fund, are not allowable as a deduction under section 36(1)(va) if deposited beyond the due date prescribed under the respective welfare statutes, even by a single day. Such delayed deposits are not cured even if made before the income-tax return filing due date.

279 ITR 331/149 Taxman 15 (Guj.); 5. CIT v. Sabari Enterprises
298 ITR 141 · 2008 · High Court
706
citing judgments

Employee contributions to provident fund or ESI, even if deposited after the due date specified in the respective welfare statutes, are allowable as a deduction under Section 36(1)(va) if paid before the due date for filing the income-tax return. This judgment aligns the treatment of employee contributions with employer contributions under Section 43B.

CIT v. Ghatge Patil Transports Ltd.
368 ITR 749 · 2014 · High Court
609
citing judgments

Deduction for employees' contributions to PF and ESIC is allowable under Section 43B if paid before the due date for filing the return under Section 139(1); similarly, delayed deposits of employers' contributions to ESIC and PF are also allowable.

CIT v. State Bank of Bikaner & Jaipur
43 Taxmann.com 411 · 2014 · High Court
524
citing judgments

Employee contributions to provident fund, ESI, and other welfare funds, if deposited by the due date for furnishing the return of income under Section 139(1), are allowable as a deduction and cannot be disallowed under Section 36(1)(va) read with Section 2(24)(x) or Section 43B, even if deposited after the due date prescribed by the respective welfare Acts.

Essae Teraoka Pvt. Ltd. v. DCIT
366 ITR 408 · 2014 · High Court
519
citing judgments

An employer's delayed remittance of employees' contributions to provident fund (PF) or Employees' State Insurance (ESI) is deductible if the payment is made before the due date for filing the income tax return under section 139(1), applying the provisions of section 43B and notwithstanding section 36(1)(va).

CIT v. Bharat Hotels Ltd.
410 ITR 417 · 2019 · High Court
486
citing judgments

Employee contributions to provident fund and ESI, if paid beyond the due date prescribed by the respective welfare fund statutes, are not allowed as a deduction under the Income Tax Act.

CIT v. Nipso Polyfabriks Ltd.
350 ITR 327 · 2013 · High Court
425
citing judgments

Deduction for employee contributions to EPF/ESI is allowable under section 43B if paid before the due date for filing the return of income under section 139(1), irrespective of the due dates under the respective welfare fund statutes.

Judgments on Section 36(1)(va)

ACIT, Circle - 1(1), Kolkata vs. M/S. Mcnally Sayaji Engineering Limited, Kolkata

Appeal is dismissed

ITA 1173/KOL/2018[2013-14]Status: DisposedITAT Kolkata17 Jan 2020AY 2013-14

Bench: Shri P.M.Jagtap, Vice- & Shri S.S.Godaraassessment Year:2013-14 Acit, Circle-1(1), P- M/S Mcnally Sayajt बनाम 7,Chowringhee Square, Engineering Ltd., 4, / R.No.20, 7Thfloor, V/S. Mangoe Lane, Kolkat-A7A00 069 Kolkata-700 001 [Pan No.Aaccs 5491 A] .. अपीलाथ" /Appellant ""यथ" /Respondent Shri Ram Bilash Meena, Cit-Dr अपीलाथ" क" ओर से/By Appellant Shri Aplesh Gupta, Aca ""यथ" क" ओर से/By Respondent 07-01-2020 सुनवाई क" तार"ख/Date Of Hearing 17-01-2020 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per S.S.Godara:- This Revenue’S Appeal For Assessment Year 2013-14 Arises Against The Commissioner Of Income Tax (Appeals)-I, Kolkata Dated 13.03.2018, Passed In Case No.10199/Cit(A)-1/Circle-1(1)/2016-17, Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’ Heard Both The Parties. Case File Perused. 2. The Revenue’S Former Substantive Ground Pleads That The Cit(A) Has Erred In Law & On Facts In Deleting The Employees Contribution To Provident Fund Disallowance Of ₹20,38,637/- Despite The Fact That The Same Had Been Deposited After The Due Date As Per The Specific Provision In The Corresponding Statue. It Fails To Dispute That The Assessee’S Impugned Credit Had Been Made Very Well Before The Date Of Filing Return & Therefore, This Disallowance Made U/S. 36(1)(Va) R.W.S. 43B Of The Act Is Not Sustainable As Per Hon'Ble Jurisdictional High Court’S Decision In Cit Vs. M/S Vijay

Section 143(3)Section 36(1)(va)