PF Return Filing

PF Return filing is mandatory for Organisations, Factories, Establishments every month on or before 25th. A provident fund has an objective to provide financial security and stability to employees.

Employees Provident Fund is a retirement benefit scheme for all salaried people and this fund is maintained by Employees Provident Fund Organization of India (EPFO) and any company having 20 employees or more is required to register with EPFO.

Contact FINXURANCE today to simplify your PF return filing process with expert guidance.

EPF Scheme

The EPF Scheme, established by the government, is a social security initiative to promote savings among employees and ensure post-retirement benefits such as pensions.Through regular contributions deducted from their salaries, employees accumulate savings over time. Upon retirement or leaving their jobs, these savings can be accessed as a lump sum payment.

Under the EPF scheme, employers and employees contribute 12% of basic pay. While 3.67% of the employer's contribution is directed to the employee's EPF account, the remaining 8.33% is allocated to the Employees Pension Fund (EPF).

Employees can withdraw EPF amounts upon retirement (at or after 58 years of age), unemployment for two months, or in the event of death before the specified retirement age.

Who is Required to File PF Returns?

Entities falling under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, must file PF returns. This encompasses establishments with 20 or more employees and fewer than 20 employees voluntarily registered under the Act.

Advantages of Filing PF

Within the Goods and Services Tax (GST) system, 13 returns cater to different facets of a taxpayer's financial dealings. It's important to recognize that not all taxpayers must file every type of return; the specific returns that need to be filed depend on the taxpayer's category and the particulars of their GST registration.

Regularly filing returns offers numerous benefits for both employers and employees, which include:
  • Compliance with Legal Requirements: Filing Returns is a legal obligation, and adherence ensures avoidance of penalties and fines for non-compliance.
  • Employee Security: PF contributions form a crucial component of an employee's social security. Consistent return filing guarantees that these contributions are accurately recorded, safeguarding employee financial security.
  • Tax Advantages: PF contributions are eligible for tax deductions. Consistent PF filing facilitates employers in claiming these tax benefits, contributing to overall financial efficiency.
  • Organized Record-Keeping: Regular filing of returns enables employers to maintain systematic records of employee PF contributions. This organized approach simplifies the tracking and managing of employee benefits, fostering efficient administration.

PF Return Due Date

The PF Return due date varies based on the nature of the establishment.

Private Establishments
  • Private establishments must files every month, with submissions due by the 15th of the subsequent month.
  • For example, if the return period is January, the PF due date deadline is February 15th.
Government Establishments
  • Government establishments adhere to a quarterly filing schedule.
  • Returns are to be submitted 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 25th April of every year

Missing return due dates leads to penalties and legal repercussions.

Documents Required

If you submit GST returns late, you could face penalties and interest charges. Businesses should submit on time to avoid these costs. Here's what you need to know about late GST returns:

  • 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

Different Forms Required for Return Filing are as follows:

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

Consequences of Non-Compliance with PF Filing

Failure to adhere to requirements may incur penalties and legal consequences. The EPFO has the authority to levy penalties of up to Rs.5,000 per day for delayed filings. Furthermore, non-compliance can jeopardize employee benefits, potentially resulting in delayed or reduced 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 necessitate monthly submission, with a deadline of 15 days following the end of each month.
  • Mode of Filing: Electronic filing via the EPFO's online portal is the mandated return submission method.
  • Late Filing: Failure to file returns by the due date incurs a penalty of 10% per annum and accrued interest.
  • Correction of Errors: Any identified errors in returns post-submission must be rectified within 60 days following the end of the respective month.
  • Consolidated Statement: At the conclusion of each fiscal year, the EPFO must receive a consolidated statement detailing all PF contributions made throughout the year.

PF Return Filing Procedure

The procedure for filing a PF Return is explained here. Streamline your return filing process with our expert's guidance:

  • PF Registration: Ensure your establishment is registered with the Employees' Provident Fund Organization (EPFO) and has obtained a PF registration number.
  • Gather Data: Collect all necessary data, including details of employee contributions, employer contributions, and other relevant information required for filing.
  • Prepare Returns: Use the prescribed format or software provided by the EPFO to prepare the returns accurately.
  • Verification: Double-check all the information entered in the returns to ensure accuracy and compliance with regulations.
  • Submission: File the PF returns electronically through the EPFO's online portal. Ensure timely submission by the specified deadline.
  • Acknowledgement: Upon successful submission, obtain an acknowledgment or receipt of the filed PF returns for your records.
  • Annual Consolidated Statement: At the end of each financial year, submit a consolidated statement of all PF contributions made during the year to the EPFO.
FAQs

Frequently Asks Questions

All the employers who have obtained PF registration are required to do PF return filing on monthly basis. The PF returns are to be filed by the 15th of each month on the unified portal.
The employer and the employee both have to both contribute 12% of the basic salary of the employee in the EPF account.
PF registration is mandatory for the employees who have a basic salary of dearness allowance is up to 15,000 and for those who are earning beyond Rs.15,000 it is not mandatory to get PF registration.

You cannot apply for withdrawing the EPF account balance immediately after the resignation from the company. In case if the applicant is choosing to withdraw money in the PF account before completing 5 years, you will liable to pay tax on the amount.

If the member has more than EPF member ID i.e EPF account and the EPF account of accounts have not been transferred to the latest EPF account, then the member is required to get the PF transferred into the current EPF account.

When the employee applies for EPF it takes 5-30 days to get the PF amount into the bank account. But the time depends on how fast the EPFO officer clears the claim. Some EPFO office clears the claim in 5 days while some take more days.
Offline transfer of the PF may be done only if the transfer from an exempted establishment to another exempted establishment. For other cases, it can be made online.

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