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Change in accounting practices post Supreme Court’s verdict to include allowances for PF contribution

June 25, 2019[2019] 106 taxmann.com 287 (Article)
Recently, several companies have been grappling with the financial reporting implications of the Supreme Court’s ruling on Provident Fund. The Supreme Court’s ruling on Provident Fund on February 28, 2019 stated that employers can’t segregate special allowances from basic salary, rather it is to be included for Provident Fund deductions under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
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