Employees’ Provident Fund Organisation (EPFO) has tried to simplify the process of filing returns and make it more efficient. How? It has launched an improved electronic challan-cum-return (ECR) facility starting September.
The Central Provident Fund Commissioner has reportedly issued a notification to this effect.
The revamp of the facility will see the process of submitting returns being separated from the process of generating payments. There will be system-based validations in place so that incorrect ECRs are not submitted.
The improved facility will facilitate the calculation of damages and interest under Sections 14B and 7Q of the Employees’ Provident Fund Act. It is compulsory to pay the interest amount under Section 7Q in addition to the monthly contributions. Employers are liable for interest payment on any pending EPF dues under Section 7Q with effect from due date to the actual payment date. Under Section 14B, the EPFO is authorised to impose damages in case of payment defaults.
The format presently being used for ECR remains the same with employers being allowed to file returns under the regular, supplementary or revised categories.
Additionally, employers will be notified by the system in case contributions are made under the Employee Pension Scheme (EPS) by mistake. Earlier, the system lacked such checks which led to errors and unnecessary delays in processing.
The simplification of the system is aimed at making EPFO processes more user-friendly and to eliminate any errors in data entry or submission.