: For Finance Professionals & Students

Tag Archives: Providend Fund under Business & Profession

Expenses incurred on Stamp duty for obtaining loan is revenue expenditure

India Cements Ltd. v/s Commissioner of Income-tax K. SUBBA RAO, J.C. SHAH AND S.M. SIKRI, JJ.
CIVIL APPEAL NO. 1106 OF 1964 DECEMBER 8, 1965
A.V. Viswanatha Sastri, R. Venkataraman and R. Gopalakrishnan for the Appellant. S.T. Desai, Gopal Singh, B.R.G.K. Achar and R.N. Sachthey for the Respondent.


Under the provisions of section 11 of the Income Tax Act 1961 , the primary condition for grant of exemption to trust or institution in respect of income derived from property held under such trust is that the income derived from property held under trust should be applied for the charitable purposes and such income cannot be applied during the financial year, it has to be accumulated and applied for such purposes in accordance with various conditions provided in the section.

In this particular article I wish to share some of my views about Provident Fund contribution by the Employer and Employee, its Taxability and deduction under the head of Business or Profession.

 The main objective of the provident fund is to give retirement benefit in the form of lump-sum amount on retirement and also to provide pension scheme to the employees and their families.

 To govern the activities of provident fund The Employees Provident Fund act, 1952 has been introduced by the government of India and also Indian Income Tax Act, 1961 governs the taxability of the contribution made towards Provident Fund by the Employer and Employee.

© 2014, all rights reserved at