What is PF Return?
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.
During the working tenure, employee and employer both contribute 12 percent of the basic salary of employee into EPF account. Employee's entire 12 percent goes into EPF account and Employer's 3.67 percent is transferred into EPF account of employee. Rest 8.33 percent from employer's side is diverted in Employees Pension Fund (EPF).
EPF Registration is mandatory for companies/organizations having more than 20 individuals. Registration can be done online and offline both but preferably done with online mode.
Benefits of PF Return Filing (Provident Fund) Return
There are different forms of benefits which can received from filing the PF return. The following are the benefits of filing the PF return:
Welfare of the Employees-
The employees will understand that the organisation values the welfare of the employees. This will increase the amount of employee welfare.
Compliance with Law-
Any company complying with the requirements of EPF will be benefitting from the scheme. Apart from this, the company would also remain transparent throughout the whole process of provident fund registration.
More Social Security-
Apart from having a secure system of social security, the whole process related to PF is managed by the Employee Provident Fund Organisation (EPFO). Such organisation regulates the entire process of PF registration. Hence complying with such systems makes the entire process hassle free.
Benefits of Insurance-
Any organisation which does not have some form of insurance would get the benefits of the Employee Deposit Linked Insurance Scheme (EDLI). Through this scheme employees can secure the benefits of insurance. For this 5% of the monthly contribution must be paid as a premium for this form of insurance to be applicable.
An employee can withdraw specific amount of salary from this contribution which is equivalent to six times or the entire amount whichever is lesser for medical expenses during emergencies.
Benefits related to Taxation-
There are different forms of taxation benefits under this scheme. Such benefits can be enjoyed by both the employer and the employee.
What details have to be provided by the Employer?
Employer needs to provide following details along with EPF Form which can be downloaded from 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
What is the Procedure of Filing PF Return?
The process in which PF return has to be filed by the employer has to be in compliance with the requirements of the Unified Portal of PF filing. Any employer that is registered under the system of Employees Provident Fund System has to mandatorily consider filing the returns on time.
Form 2-Such form is utilised by the employer for a flagship scheme under the Employee Family Scheme utilised by the employee. For the above, Form 2 must be submitted along with Form 5. In this section both part A and part B must be filed as per the requirements.
Form 5- This is a monthly compliance and report which is required to be filed. Any employee who is newly enrolled in the systems related to provident fund.
Form 10- For any form of individual or employee who is not part of the organisation would be present under this form.
PF Annual Filing- By 30th April of every year, the annual returns for PF must be filed. This must be carried out through filing Form 3A and Form 6A.
Account Statement Filed Annually- Along with this, the EPFO has to send the annual account statement regarding the filings.
- 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