A social security system known as the Provident Fund was implemented to encourage employee contributions and to benefit them in retirement. Both the company and the employee make monthly contributions to the PF. The employee’s contribution to the PF can only be withdrawn during the duration of employment, however there are several exceptions to this rule. EPFO – Employees Provident Fund EPF Return and Filings, filing of pf return services in India.
What is Employees Provident Fund (EPF)?
Employees Provident Fund is a retirement benefits scheme for all salaried people, and this fund is maintained by the Employees Provident Fund Organization of India (EPFO). EPF is a periodic contribution by both the employer and the employee towards a common fund to ensure that the employee is financially secure during the course of his retirement.
Any company having 20 employees or more is required to register with EPFO.
During the working tenure, the employee and employer both contribute 12 percent of the basic salary of an employee into the EPF account. Employee’s entire 12 percent goes into EPF account and Employer’s 3.67 percent is transferred into EPF account of an employee. Rest 8.33 percent from the employer’s side is diverted in Employees Pension Fund (EPF).
EPF Registration
Registration can be done online and offline, both but preferably done with online mode.
An employer needs to provide the following details along with EPF Form, which can be downloaded from the EPFO website.
- Name and address of the company along with head office and branch details
- Date of Incorporation of company
- Provide Details of employees (name, date of joining, salary, etc.)
- Business of the company
- Director’s details
- Banking details of the company
- PAN details
Following documents are required to furnish for successful registration of EPF.
- Copy of partnership deed (In case of partnership firm)
- Certificate of Incorporation (In case of Private or Public Company)
- Registration Certificate (In case of society)
- PAN details of the company
- Proof of Incorporation
- Salary details of employees
- Balance Sheet details
Employer Responsibilities
NEW ESTABLISHMENTS
- Register establishment with EPFO on crossing the eligibility threshold – 20 or more employees of specified establishment types.
- Other establishments – not statutorily required to register – can register voluntarily.
- Registration is online, free of cost, and hassle-free—no requirement of visiting the EPF office.
- PAN is mandatory for registration. Digitally sign and upload requisite documents.
EXISTING ESTABLISHMENTS
- Update establishment/owner particulars – online (FORM 5A).
- Register digital signature for facilitating e-enabled online services.
Penalty for Delayed Payment
Delayed remittance of PF deposit will incur penal damages. The penal charges, as specified by the EPFO, are as follows:
| S.No | Time-Period of Delay | Rate of Penalty |
| 1 | Delay for up to 2 months | 5% per annum |
| 2 | Delay ranging from 2 months to 4 months | 10% per annum |
| 3 | Delay ranging from 4 months to 6 months | 15% per annum |
| 4 | Delay exceeding 6 months | 25% per annum (It may correspondingly go up to 100%) |
Damages cannot be levied at a lesser rate than what is specified. However, exceptions in terms of reductions or waiver of damages can be extended to sick industrial companies having rehabilitation schemes sanctioned by the Board for Industrial and Financial Reconstruction (BIFR).
The debit date from the employer’s account may be considered the date of payment of penal damages. The occurrence of delay due to delayed credit in EPFO’s accounts or delayed transacting by the banks will be dealt with in accordance with the banking agreement with the various banks. EPFO – Employees Provident Fund EPF Return and Filings, filing of pf return services in India.
What is a Provident Return Filing?
Employees Provident Fund is a retirement benefit system for all salaried persons. Employees Provident Fund Organization of India (EPFO) manages the fund, and every company with 20 or more employees must register with EPFO.
During the employee’s employment, both the employee and the employer contribute 12 percent of the employee’s basic salary to the EPF account. The employee’s complete 12 percent goes into their EPF account, while the employer’s 3.67 percent goes into the employee’s EPF account. The remaining 8.33 percent is diverted to the Employees Pension Fund by the employer (EPF).
Benefits of PF Return Filing
There are several types of benefits that can be obtained by filing a PF return. The following are some of the advantages of submitting a PF return:
- Employees’ well-being- Employees will recognise that the company is concerned about their well-being. Employee welfare will grow as a result of this.
- Compliance with the provisions of the law- The scheme will benefit any company that complies with the EPF’s regulations. Aside from that, the corporation would be honest throughout the entire provident fund registration process.
- Benefits of Insurance- The Employee Deposit Linked Insurance Scheme provides benefits to any organisation that does not have any type of insurance (EDLI). Employees can obtain insurance benefits through this programme. For this type of insurance to be applicable, 5% of the monthly contribution must be paid as a premium.
- Medical Benefits- During an emergency, an employee can take a set amount of salary from this contribution, which is equivalent to six times or the total amount, whichever is smaller.
- Taxation Benefits- Under this programme, there are several types of tax benefits. Both the employer and the employee can benefit from such advantages. EPFO – Employees Provident Fund EPF Return and Filings, filing of pf return services in India.
What details have to be provided by the Employer?
Along with the EPF Form, which can be downloaded from the EPFO website, the employer must furnish the following information.
- Name and address of the company, as well as information about the headquarters and branches
- Provide the company’s incorporation date Employee information (name, date of joining, salary, etc)
- The company’s operations
- Details about the director
- The company’s banking information
- PAN information. EPFO – Employees Provident Fund EPF Return and Filings, filing of pf return services in India.
What is the Procedure of Filing PF Return?
The mechanism through which the employer must file a PF return must adhere to the standards of the Unified Portal for PF Filing. Any employer who is a member of the Employees Provident Fund System is required to consider filing the returns on time.
- Form 2-This form is used by the employer for a flagship scheme under the Employee Family Scheme that the employee participates in. Form 2 must be submitted with Form 5 in order to complete the above. Both parts A and B must be filed in this section according to the rules.
- Form 5- This is a monthly report and compliance form that must be filed. Any new employee who has not yet been enrolled in the systems that deal with provident funds.
- Form 10- This form is for any type of individual or employee who is not a member of the organisation.
- Annual PF Filing- Annual PF returns must be filed by April 30th of each year. This must be done by submitting Form 3A and Form 6A.
Monthly PF Return Filing
Employers having PF registration are responsible for filing returns every month. The filing of returns must be completed by the 25th of each month.
Form 2
This form is filed for the purpose of declaration and nomination under the flagship schemes of Employees Provident Fund and Employees Family Pension. It must be filed by an employee when he joins an entity. The form must be submitted along with Form 5. Form 2 is divided into two distinct parts:
Part A
Part A of Form 2 specifically deals with nominating the recipients of the EPF balance of a particular account holder in the event of their death. The following details of the nominee must be included in this part of the form:
- Name
- Address
- Relationship with the subscriber
- Age
- Sum of money to be paid to the nominee
- Guardian details (if the nominee is a minor)
Part B
Part B should contain the details of the nominee as already specified in Form A. In addition to it, details of the family members who are eligible to receive the children/widow pension must be furnished.
Form 5
Form 5 is a monthly report which contains details pertaining to the employees who have been newly enrolled in the provident fund scheme. The form must include the following details:
- Name of Organization
- Address of organization
- Code number of organization
- Account number of employee
- Name of employee
- Name of the husband/father
- Date of Birth of the employee
- Date of joining
- Track record of work
Form 10
Form 10 is a monthly report that contains details of the employees who have ceased to be a part of the scheme on a given month. The following details must be filled in the form:
- Account number.
- Name of employee.
- Name of the father or husband.
- Date of leaving service.
- Reason for leaving service.
Form 12A
Form 12A is a report that includes the details of the payments contributed to the account of the respective employee in a particular month.
FAQ’s
What is PF return filing?
All employers that have applied for PF registration must file PF returns on a monthly basis. The PF returns must be filed on the unified site by the 15th of each month.
What is the PF contribution?
Both the employer and the employee must contribute 12 percent of the employee’s basic salary to the EPF account.
Is PF registration mandatory for individuals earning more than 15,000?
Employees with a base income or dearness allowance of up to Rs.15,000 are required to receive PF registration, while those earning more than Rs.15,000 are exempt from this need.
Is it possible to get PF after registration?
After quitting your job, you will not be able to ask for a withdrawal of your EPF account balance. If the applicant chooses to take money out of the PF account before it has been open for five years, you will be responsible for paying tax on the amount taken out.
Is PF transfer required?
If a member has more than one EPF member ID, i.e., an EPF account, and the EPF accounts of those accounts have not been transferred to the most recent EPF account, the member must have the PF transferred to the most recent EPF account.
How many days it will take to clear the PF amount?
Employees must wait between five and thirty days from the time they submit their EPF application to get their PF payment.
Time will elapse, however, based on how quickly the EPFO officer resolves the claim.
EPFO offices vary widely in how quickly they process claims. Some process claims in 5 days, while others take much longer.
Can PF be paid online?
Only transfers from one exempted establishment to another allow the offline transfer of the PF.
In some circumstances, it’s possible to make it on the internet.
Why PF transfer is required?
If a member has more than one EPF member ID, and the EPF account has not been converted to the most recent EPF account, the person must have the PF transferred into his most recent EPF account.
What is the due date for monthly challan remittance to the bank for PF?
Monthly Challan remittances to the Bank for PF are due on the 15th of each month on or before this date.
What is the due date for monthly PF returns?
Monthly PF returns are due on the 15th of the month following the month in question.
What is the due date for yearly PF return filing?
The annual return filing deadline is on the 30th of April of each year.
How can SattvaCFO help us?
At SattvaCFO, our returns filing team will ensure a smooth process of your return without the worst of technical issues. Get your returns filed and recorded accurately with detailed data through accurate and systematic analysis. EPFO – Employees Provident Fund EPF Return and Filings, filing of pf return services in India.
