Section 40A(9) - Contribution to non-statutory funds - Income Tax - Ready Reckoner - Income Tax

Section 40A(9) : Contribution to non-statutory funds Any sum paid by the assessee as an employer by way of contribution towards Recognised Provident Fund, or approved Superannuation Fund or an approved Gratuity Fund, pension scheme referred to in section 80CCD is deductible to the extent if is required by any law. No deduction shall be allowed in respect of any sum paid by the assessee as an employer, towards setting up or formation of, or as contribution to, any fund, trust, company, association of persons, body of individuals, society or any institution except where such sum is required to be paid under any law in force or where such sum is paid for an approved gratuity fund or recognised provident fund or approved superannuation fund or pension scheme referred to in section 80CCD . Therefore any expenses on formation of or contribution to any welfare fund of the employees except the above SHALL NOT BE ALLOWED AS DEDUCTION .