Employee Benefit Expenses as per Schedule III of the Companies Act, 2013 include all expenses related to employees such as:
- Salaries and wages (in cash or kind)
- Contribution to provident and other funds
- Leave encashment
- Staff welfare expenses
- Other employee-related benefits
Interest paid on Deposit is a Finance Cost, not an Employee Benefit Expense.
Interest paid on deposits (whether public deposits, fixed deposits from customers, or any other deposits) is classified as a financial charge under "Finance Costs" in the Statement of Profit and Loss.
This represents the cost of borrowing money or accepting deposits, which is fundamentally different from compensation or benefits provided to employees for their services.
Therefore, Option 3 is the correct answer as it does NOT form part of Employee Benefit Expenses.