Income Tax Deduction claim of Employees Contribution to PF or ESI is allowable only if deposited on or before statutory due date under ESI/PF Act: Delhi HC

The Indian IT sector is facing anxiety as the United States considers the HIRE Act, which may levy an additional 25% tax on US companies that outsource employment. This proposed legislation is a direct challenge to the cost arbitrage model that has been a cornerstone of India's IT services industry. With the US being the largest market for Indian IT exports, the potential tax could significantly increase operational costs and reduce the competitiveness of Indian firms. While the bill's passage is not certain, its introduction reflects a growing protectionist sentiment in the US, prompting Indian IT companies to re-evaluate their business models and consider strategies to mitigate the potential impact.