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Provident Fund Return

What is Employees Provident Fund (EPF)?

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). 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, 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

Registration can be done online and offline both but preferably done with online mode.

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

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 on-line, free of cost and hassle free. No requirement of visiting 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 on-line 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 scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR).

The date of debit from the employers account may be considered as the date of payment of penal damages. Occurance 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.

Monthly PF Return Filing

 

Employers having PF registration are responsible to file returns on a monthly basis. 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 EPF balance of a particular account holder, in the event of his/her 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 into 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.

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