Income Tax

EPF Return and Annual Compliance

What is EPF Return? And what are its Annual Compliances?

Employee Provident Fund (EPF) is saving scheme launched by Government of India for all employees who are working in government, public and private sector organizations. EPF Return It is administered by the Employees Provident Fund Organization (EPFO) of India. Companies having an employee’s strength of more than 20 are required to get registered with the PF department. The companies can also register voluntarily if the employees are less than 20 with the PF department to give the benefits of EPF Return to its employees. The registration has to be done within one month from the date of hiring 20 employees.

What is the Registration Procedure?

The registration procedure is totally online and all the documents required for the same must be submitted in soft copies. Some of the documents which are required for registration are PAN card, canceled cheque, partnership deed, certificate of incorporation, etc. The official website of the Employees Provident Fund Organization is www.epfindia.gov.in. Once the company has made an application for EPF Registration they will get a registration certificate along with a unique number. The company will also get a user id and password to operate the account online and file the returns.

Return and Compliance

• Once the Organisation is registered with the PF department than it has to contribute 12% of basic of employee salary towards PF and 12% is to be contributed by the employee towards his contribution.
• The amount contributed by the organization and the employee must be deposited with the PF department regularly within the prescribed time limit.
• The Chilean of the amount contributed must be deposited within 15^th of every month and EPF return must be filed within 25 days of the following month.
• It includes the details of employees, its monthly wages, it UAN number, number of leaves, etc.
• An employee joining the firm has to get enrolled in the PF department by filing the requisite form.
• The procedure for filing of return and payment of Chillan is online.
• If the amount is deposited late than it will attract a penalty.
• Every year an annual return should be submitted on or before 30^th

What are the benefits of EPF?

Once the employee is registered with the PF department by the organization where he/she is working will be allotted a Unique Identification Number (UAN). It is generated by the PF department for every employee who is getting enrolled. The employee can check the balance of their contribution made to date online through this UAN. In the EPF website, the employees can also their passbook and check the contribution month wise. PF Return If an employee has left the organization and joined another organization that he can transfer the balance to a new employer. On retirement, the employee can withdraw the amount of PF contributed by them.

Our Recommendation: Advantages and Disadvantages of Employee Provident Fund (EPF).