What is PF return annual filing?

 



Introduction

A provident fund, which is registered with the Securities and Exchange Commission (SEC), is a separate legal entity completely separate from both the employer and the investment management company. Employees (future fund members) can be assured that the assets of the fund will not be affected by any liabilities of the employer or the investment management company in case of financial insolvency. We will discuss all about filing annual PF return.

What is PF?

A provident fund is a scheme run by the government, for employees who can contribute a portion of their pension fund every month. When you retire or quit your job, you can easily access these monthly savings as a lump sum. Organizations with less than 20 employees can also obtain PF registration voluntarily.

  • PF contributions can only be withdrawn by the employee at the time of his/her retirement, barring a few exceptions.
  • All employers with PF registration are responsible for filing monthly returns.

Due date for filing PF return

This is a monthly return that must be submitted by the employer through the Employer e-seva portal. The return will include basic information for both new and departing members as well as member-specific information about pay and contributions.

  • The due date for remittance of monthly challan to the bank for PF is 15th of every month
  • The due date for annual returns is 30th April every year.

Filing of annual PF returns

Annual PF returns are filed using the following form:

  • Form 3A
  • Form 6A

Form 3A

Employee Provident Fund and Employee Pension Fund are presented by the employer and the subscriber in Form 3A month to month. It also includes the following information.

  • Form 3A must bear the signature and seal of the employer.
  • Name and address of the institution
  • Voluntary contribution if any
  • Father’s or husband’s name
  • Statutory rate of contribution
  • Customer Name
  • Account number

Form 6A

Annual contribution information for each member is contained in Form 6A, which is a consolidated annual contribution statement. The following information should be included in the form:

  • Wages, Maintenance Allowance (if any), and D.A. which includes the cash value of food concessions paid during the currency period.
  • Amount of contribution which is deducted from wages.
  • Employer’s Contribution (Both EPF and Pension)
  • Names of Customer Members
  • High Voluntary Contribution Rate (if any)
  • Advance refund
  • Account number
  • Comments

In addition, the following information should be entered in the “Prior Amount” column:

  • Month of contribution
  • Including a refund for the advance, which the donation was remitted
  • EDLI contribution
  • Pension Fund Contribution
  • Administrative charges
  • Total contributors

What are the benefits of filing annual PF returns?

Benefits of PF (Provident Fund) are-

  • After retiring, you can earn a fixed income by staying at home in your later years.
  • A voluntary provident fund allows you to invest more than the minimum or 12% of your monthly income.
  • Life insurance is available through provident fund (at any age).
  • A provident fund allows you to name a nominee from your family so that they can receive your pension or monthly income in case of your death.
  • After turning 60, you can withdraw your provident fund and avail both EPF and EPS.
  • You can take early withdrawal from your PF in case of emergency as well as in certain unavoidable specified conditions like marriages, loss of job, repayment of debt etc.
  • Although having a provident fund is not mandatory, it is highly advisable for everyone to do so to maintain their standard of living after retirement.

Documents Required for Filing PF Return

  • Account Statement: Canceled check or most recent bank statement from the bank account
  • Payment Challan: Copy of Provident Fund Payment Challan.
  • PF Contribution: PF Contribution List.
  • PAN Card: ID and address proof PAN of employee and employer.
  • Aadhaar Card: Identity and address proof, Aadhaar card of employee and employer.
  • Balance Sheet: Company’s balance sheet information.
  • Monthly Salary Statement: Employee’s pay slips for each month.
  • Certificate of Incorporation: In case of company, certificate of company registration.

Conclusion

An annual provident fund return is required, and must be submitted by April 30 every year. Two forms are required for submission of Annual PF Return Form 3A and Form 6A. A provident fund is a social security scheme introduced to encourage employees to save and help them in their retirement. Every month, both the company and the employee contribute to PF.

Comments

Post a Comment

Popular posts from this blog

8 Sources of Finance for Small-Scale Industries

Image
  Introduction Finding financing for your business is one of the most important things you can do to ensure its success. There are a wide variety of ways in which you can find financing for your small-scale industry, and this is just one aspect of the overall financial management of your business. Small-scale industries need both long-term and short-term credit. The source of finance is essential for the survival, development, and overall growth of the industry. There are a wide variety of sources of finance, including personal investment, love money, venture capital, angel funding, crowdfunding, business incubators, etc. These sources are useful under various circumstances. They are classified based on time period, ownership and control, and their source of generation. Sources of finance are the most researched area, especially for startup entrepreneurs. In this article, we will explore the top 8 sources of finance for small-scale industries in India. What is a Small-Scale Industry? S
Read more

Business Choices: Sole Proprietorship vs. Partnership firm

Image
Introduction When starting a new firm, choosing the correct business structure is crucial. Partnerships and Sole Proprietorships are two prominent business structures that many small business owners prefer for flexibility and simplicity. In this article, detailed information on what a Sole Proprietorship is and the difference between Sole Proprietorship and a partnership firm is discussed. What is Sole Proprietorship? A Sole proprietorship is a name given to a business owned and operated by a single individual. It’s the simplest type of business organization. A sole proprietorship is not considered a separate legal entity from its owner. What are the Characteristics of a Sole Proprietor? Single Ownership:  The term single ownership refers to the fact that the sole proprietor owns all the assets of the business, including the property. Therefore, the sole proprietor takes on all the risks associated with the business. Unlimited Liability:  Sole proprietorship business liability is unlim
Read more
Image
  Start Business in India Registering a business in India is a very quick and online process. India is a land of infinite opportunities and skilled workforce as one would agree. Starting a business in India and Investing was never so easy, cheap and quick. One can start a wholly owned Indian subsidiary anywhere in India. There are no state-specific laws to register your business in India. There is only one central law that governs the Indian Subsidiary Set up across India. All you need a resident Indian director (not necessarily a shareholder but can be an employee!) and a rented (virtual) place of office to get going. 100% ownership, strategic decision -making and control of operations rest with your parent company always. Minimum Requirement for Indian Subsidiary: Minimum two directors are required for incorporation of the Company. At least one should be a resident of India. No minimum capital required to form an Indian Subsidiary Company in India. Indian Subsidiary Company must have
Read more