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CS Executive · Tax Laws and Practice · Income under the Head Salary

As amended with effect from 1 April 2026, section 29(1)(e) of the Income-tax Act, 2025 allows the employer a deduction for employee contributions received (covered by section 2(49)(o)) if they are credited to the employee's account in the relevant fund by which date?

After the amendment effective 1 April 2026, the employer must credit the employee's contribution to the employee's account in the relevant fund on or before the due date of filing the return of income under section 263(1) for the tax year to claim the deduction.

  1. AOn or before the due date of filing the return of income under section 263(1) for the tax yearCorrect
  2. BThe date prescribed under the relevant labour Act or the employee's contract of service
  3. CThe last day of the month following the month of deduction
  4. D31 March of the tax year

Explanation

The substituted clause (e) uses a single clear date: the due date of filing return under section 263(1). The earlier version relied on the due date under the relevant Act, rule or contract, which is why the second option is wrong now.

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