Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 7 October 2026
The two 15ths
EPF dues for a month — both shares — must be deposited with the ECR by the 15th of the next month; the earlier five-day grace was withdrawn from 2016. ESI contributions run on the same clock: within 15 days of the end of the calendar month. Both are online-only payments, so “cheque in transit” excuses no longer exist.
The income-tax guillotine
The employee’s share you deduct from salary must reach EPFO/ESIC by the Act’s own due date — the 15th. Miss it and section 36(1)(va) disallows the deduction permanently; the Supreme Court’s Checkmate Services ruling (2022) closed the door on claiming it in the year of late payment. The employer’s share is kinder — section 43B allows it in the year of actual payment, as long as it is paid by your ITR due date. One rule for each half of the challan.
Interest, damages and worse
On top of the tax hit: interest at 12% p.a. under section 7Q for every day of delay, plus damages under section 14B that scale with the delay — 5% p.a. (under two months) rising to 25% p.a. (beyond six months). Deducting PF from salaries and not depositing it can also draw prosecution. The fix is boring and total: an auto-debit standing instruction and a payroll calendar that treats the 13th as the deadline. Our payroll & labour compliance service runs exactly that discipline for client companies.