No Due Date for Employees’ Contributions to NPS in PFRDA Act, Deposits before ITR Filing Valid: ITAT rules in Favor of Adani Electricity

The Income Tax Appellate Tribunal (ITAT) has ruled that there is no due date for employees’ contributions to the National Pension System (NPS) under the PFRDA Act. The case involved Adani Electricity, which had deposited employees’ contributions to the NPS before filing its income tax return. The Assessing Officer (AO) had disallowed the contributions, citing late payment. However, the ITAT found that the PFRDA Act does not specify a due date for such contributions and ruled in favor of Adani Electricity. The tribunal’s decision clarifies that contributions made before the filing of the income tax return are valid. This ruling provides relief to employers and employees, ensuring that contributions to the NPS are recognized even if made close to the filing deadline. The decision underscores the importance of understanding the specific provisions of the PFRDA Act and their implications for tax compliance.