EPF Return Filling

It is social security legislation for the future benefit of employees and their dependents; in case of unfortunate incidents occurring in the future.

The Act provides for three different schemes:

• Employees' Provident Fund Scheme - a savings scheme where the employee gets the entire accumulated balances at the time of his retirement (or earlier - for some specific events).
• Employees' Pension Fund Scheme - is a monthly pension payable to employees on their Superannuation or death or permanent disability
• Employees' Deposit Linked Insurance Scheme - provides assurance benefit upon death of employee while in service.

All those entities that employ more than 20 persons are required to obtain EPF registration. Entities having EPF registration must exile EPF returns.The Act is applicable to:

• Every factory engaged in any industry specified in Schedule I to the Act and employing 20 or more persons;
• Every other establishment employing 20 or more persons specified by the Central Government in this behalf.
• Any establishment to which the Act applies shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20. {Section 1(3) & (5)}

Employees covered enjoy a benefit of social security in the form of an attachable and un with drawable (except i severely restricted circumstances like buying house, marriage, education etc.). Financial nest egg to which employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death. Other benefits include employees’ pension scheme and employees deposited linked insurance scheme.

Any person who is employed for wages in any kind of work of an establishment or employed through contractor in or in connection with the work of an establishment and whose wages do not exceed Rs. 6,500 per month. However, an employee covered under the Act will continue to be covered under the Act even if his wages exceed Rs. 6,500 per month but will continue to get benefits as if his wages were Rs. 6,500 per month.

For Employees' whose basic is less than or equal to Rs. 6,500 per month:

• 8.33% of the employee's basic to the Employees' Pension Fund Scheme
• 3.67% of the employee's basic to Employees' Provident Fund Scheme
• 0.5% of the employee's basic to EDLI

For Employees' whose basic is more than Rs. 6,500 per month:

• 12% of the employees' basic to the Employees' Provident Fund Scheme less Rs. 541 per month
• Rs. 541 to Employees' Pension Fund Scheme (being 8.33% of employee's basic subject to a maximum of Rs. 6,500)
• 0.5% of the employee's basic (subject to a maximum of Rs. 6,500 p.m.) to EDLI

The P. F. Contribution is to be deducted -

• On basic wages
• Dearness allowance and the retaining allowance if any. {Section 6}

Employees PF returns allow the EPFO credit the PF dues to respective employee accounts and also ensure that all dues are paid regularly.

EPF returns are due half-yearly. Use Reminder to know the next EPF return due date and EPF payment due date for your business.

EPF payments can be made online through net banking facilities.

The Act permits the Central Government, subject to specified conditions, to exempt any class of establishments from the operation of the Act, if having regard to their financial position or other circumstances of the case, it is necessary or expedient to do so. {Section 16(2)}

Where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment. {Section 2(A)}

On the application of the statutory Provident Fund Scheme to an establishment, the accumulations in the private provident fund in that establishment standing to the credit of the employees who become members of the statutory Provident Fund must be transferred to the statutory Provident Fund. The accumulations will be credited to the accounts of the employees entitled thereto in the statutory Provident Fund.

The RPFC (Regional Provident Fund Commissioner) allots the PF number to an organization that enrolls with it. For Delhi based companies this number could be DL/92803. In addition to this, the employer allots a separate number to each individual employee. The employee's PF Account number would then be DL/92803/123 (Example).

In case the employee has filed a nomination form, settlement is made according to the last filed nomination form on record.

In case no nomination has been filed, the accumulated balance is divided equally among thefollowing family members in equal shares

• Sons who have not attained majority.
• Sons of a deceased son who have not attained majority. 3. Married daughters, whose husbands are not alive.
• Married daughters of a deceased son, whose husbands are not alive.

If any person

• deducts from the wages of a member the whole or any part of the employer's contribution;
• fails to submit any return, statement or other document required by the Scheme or submits a false return, statement or other document or makes a false declaration;
• obstructs any inspector appointed under the Act or the Scheme in the discharge of his duties or fails to produce any record for his inspection;
• is guilty of contravention of or non-compliance with any other requirement of the Scheme; he would be punished with imprisonment upto 1 year, or fine up to Rs. 4000.00 or with both.

The offence of failure to pay contributions amounts to continuing offence. In all other cases the offence is one committed once and for all. Failure to submit return is not continuing offence.