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PF Return Filing
PF Return Filing
Filing Employee Provident Fund (PF) returns is a vital responsibility for establishments that are registered under the PF scheme. It is essential for businesses to comply with monthly filing requirements to avoid incurring penalties and to uphold statutory obligations. At Allycon, we understand the importance of this commitment and are here to assist you at every step. Our team of experts is dedicated to providing thorough guidance and support throughout the PF return filing process, empowering you to meet your regulatory responsibilities with ease and confidence.
Contact Allycon today to streamline your PF return filing process with professional guidance.
EPF Scheme
The Employee Provident Fund (EPF) Scheme, initiated by the government, serves as a crucial social security initiative aimed at promoting savings among employees and ensuring they receive post-retirement benefits, including pensions. Employees contribute to their savings through regular deductions from their salaries, allowing them to accumulate funds over time. Upon retirement or when they leave their jobs, these savings can be accessed as a lump-sum payment.
Under the EPF scheme, both employers and employees contribute 12% of the basic salary. Of this contribution, 3.67% from the employer’s share is directed to the employee’s EPF account, while the remaining 8.33% is allocated to the Employees Pension Fund (EPF).
Employees have the option to withdraw their EPF amounts upon retirement (at or after 58 years of age), if they face unemployment for two months, or in the unfortunate event of death before reaching the designated retirement age.
PF registration
PF registration is the process through which an establishment or employer enrolls with the Employees’ Provident Fund Organization (EPFO) to participate in the Provident Fund (PF) scheme. This registration is mandatory for organizations that employ 20 or more individuals and is voluntary for those with fewer than 20 employees.
Once registered, the employer receives a unique PF code, which is crucial for executing various PF-related transactions, including monthly contributions, withdrawals, and filings. Notably, organizations with fewer than 20 employees still have the opportunity to voluntarily register for PF benefits. Employers with PF registration must file monthly returns to maintain regulatory compliance.
PF return filing
PF filing involves submitting comprehensive reports to the Employees’ Provident Fund Organization (EPFO). For employers registered under the Provident Fund scheme, filing is mandatory and must be conducted on a monthly basis, with the deadline set for the 25th day of each month.
Employers are required to provide various data points for return filing, including the total amount of contributions made by both the employer and the employee, details of employees covered under the scheme, their PF account numbers, and other pertinent information.
Who is Required to File PF Returns?
Entities that fall under the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952 must file PF returns. This includes establishments employing 20 or more individuals and those with fewer than 20 employees who have voluntarily registered under the Act.
Advantages of Filing PF
Filing PF returns regularly offers numerous benefits for both employers and employees, including:
- Compliance with Legal Requirements: Filing returns is a legal obligation that helps avoid penalties and fines for non-compliance.
- Employee Security: PF contributions are a crucial aspect of an employee’s social security. Regular filing ensures that these contributions are accurately recorded, thus safeguarding the financial security of employees.
- Tax Advantages: Contributions made towards PF are eligible for tax deductions. Regular PF filing allows employers to claim these tax benefits, enhancing overall financial efficiency.
- Organized Record-Keeping: Consistent filing of returns allows employers to maintain systematic records of employee PF contributions. This organized approach simplifies the tracking and management of employee benefits, fostering effective administration.
PF Return Due Date
The due date for PF returns varies based on the nature of the establishment:
- Private Establishments: Must file every month, with submissions due by the 15th of the subsequent month. For example, if the return period is January, the PF due date is February 15th.
- Government Establishments: Adhere to a quarterly filing schedule, with returns due by the end of the month following the conclusion of each quarter. For instance, if the quarter ends on March 31st, the PF due date is by the end of April.
| Type | Due Date |
|---|---|
| PF Payment | On or before the 15th of every month |
| PF Annual Return | By April 25th of every year |
Missing return due dates can lead to penalties and legal repercussions.
Documents Required
To ensure a smooth PF return filing process, the following documents are required:
- Employer’s contribution amount to EPF
- Employee’s contribution amount to EPF
- ECR (Electronic Challan cum Return) Challan copy
- Details of UAN (Universal Account Number), with KYC compliance, of employees
Required Forms for PF Filing
Several forms are necessary for return filing:
| Form | Purpose |
|---|---|
| Form 5 | Registration of new employees and updating employee details (e.g., name, address, date of birth) |
| Form 10 | Declaration and nomination of beneficiaries by employees |
| Form 12A | Registration of establishments under the EPF scheme |
| Form 3A | Monthly contribution details of employees |
| Form 6A | Annual contribution details of employees |
Form 2
Form 2 serves as a declaration and nomination under the flagship scheme of the Employment Provident Fund and the Employment Family Pension Scheme. This form must be filed by employees joining the establishment and should be submitted along with Form 5. Form 2 consists of two parts:
Part A: This section deals with nominating recipients of the EPF balance in the event of the account holder’s death. It must include the nominee’s name, address, relationship with the subscriber, age, and the amount to be paid to the nominee. If the nominee is a minor, guardian details must also be provided. This section requires a signature or thumb impression.
Part B: This part includes the nominee’s details as mentioned in Part A, along with details of individuals eligible for the children’s/widow’s pension.
Form 5
Form 5 is a monthly report detailing newly enrolled employees in the provident fund scheme. It must include the organization’s name, address, code, employee account number, name, middle name (father/husband), date of birth, date of joining, and a work track record. The form must be filed and stamped by the employer with the filing date mentioned.
Form 10
Form 10 is a monthly report that records employees who have ceased to be part of the scheme during the month. It includes the account number, employee’s name, name of the father or husband, date of leaving service, and reason for leaving. This form must also be filed and stamped by the employer with the filing date.
Form 12A
Form 12A is a report that outlines the payment details contributed to each employee’s account in a given month.
Annual PF Return Filing
Annual returns must be filed by April 30th each year. The forms utilized for annual returns include:
Form 3A: This form provides month-wise contributions to the subscriber or members towards the Employee Provident Fund and the Employee Pension Fund for the year. It must include the account number, subscriber’s name, father/husband’s name, establishment details, statutory contribution rates, and any voluntary contributions. Form 3A must be signed and sealed by the employer.
Form 6A: This form is a consolidated annual contribution statement detailing the annual contributions of each member within the establishment. It must include account numbers, subscriber names, wages, retention allowance (if any), deductions from wages, employer contributions, refund of advances, higher voluntary contribution rates (if applicable), and remarks. Additionally, the remitted contributions column should specify the month of contribution and the total amounts remitted.
Consequences of Non-Compliance with PF Filing
Failing to meet filing requirements can result in penalties and legal consequences. The EPFO has the authority to impose penalties of up to ₹5,000 per day for delayed filings. Additionally, non-compliance can jeopardize employee benefits, potentially leading to delays or reductions in pension payments.
| Period of Delay | Rate of Penalty (p.a.) |
|---|---|
| Up to 2 months | 5% |
| 2 – 4 months | 10% |
| 4 – 6 months | 15% |
| Above 6 months | 25% |
Procedural Guidelines for Filing PF Returns
- Frequency of Filing: Returns require monthly submission, with a deadline of 15 days following the end of each month.
- Mode of Filing: The mandated method for return submission is electronic filing via the EPFO’s online portal.
- Late Filing: If returns are not filed by the due date, a penalty of 10% per annum and accrued interest applies.
- Correction of Errors: Any errors identified in returns after submission must be rectified within 60 days after the end of the respective month.
- Consolidated Statement: At the conclusion of each fiscal year, a consolidated statement of all PF contributions made throughout the year must be submitted to the EPFO.
PF Return Filing Procedure
Streamline your PF return filing process with Allycon’s expert guidance:
- PF Registration: Confirm that your establishment is registered with the Employees’ Provident Fund Organization (EPFO) and has received a PF registration number.
- Gather Data: Collect all necessary data, including employee contributions, employer contributions, and any other relevant information required for filing.
- Utilize Software: Leverage dedicated PF software or the EPFO’s online portal for data input and return filing.
- Review and Submit: Thoroughly review the data for accuracy and submit the returns on or before the due date.
- Maintain Records: Retain copies of filed returns and any supporting documents for future reference.
Streamline PF Return Filing with Allycon
At Allycon, we are committed to making PF return filing straightforward and stress-free. Our team of experts is here to assist you in ensuring compliance with all regulations, streamlining the process, and minimizing the risk of penalties. Reach out to us for professional support and guidance in navigating the complexities of PF return filing.
Related Business Registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
