Know PF – The E Way!

Workshop Objectives:

At the end of the workshop, participants will be able to:

Understand concept of provident fund.

Know Deductions as per laws.

Understand Returns and tax benefits.

Forms associated with PF.

Using EPFO website for online payments and submission.

Use the application for updating PF details.

Generate Reports.

PF Deductions for employees:

All the employees in an organization, whose basic is equal to or more than 6500 are eligible for pf deduction.

PF deduction is mandatory for all the employees whose basic + da is less than or equal to 6500.

Employees with basic + da more than 6500 have an option to opt out of PF scheme.

Deduction will be 12% of basic + da for an employee.

If the basic + da is more than 6500, employer have an option to pay 12% of actual amount or Rs. 780 (12% of 6500).

PF Deductions for employers:

All the organizations having an employee strength of 20 or more than 20 are eligible for PF deductions.

Employer has to contribute 13.61% towards PF deduction. It is divided as:

- Pension Fund : 8.33%

- Provident Fund : 3.67%

- Employee Deposit Linked Insurance : 0.5%

- Administrative Charges for PF Scheme: 1.10%

- Administrative Charges for EDLI Scheme: 0.01%

Lets take an example:

An Employee’s basic is : 5000His PF contribution : 12% of basic = Rs. 600

Employer’s Contribution: Pension fund : 8.33% of basic = Rs. 416.5 = Rs. 417Provident fund: 3.67% of basic = Rs. 183.5 = Rs. 184Administration charges: 1.61% = Rs. 80.5 = Rs. 81

Example:

Tax Benefit and returns:

Tax benefit:

Sec 80 (C): Tax exemption on the investment up to 1 lac.

Sec 10 10 (C): Avail income tax exemption on the withdrawn PF amount.

Returns:

The current rate of interest on PF is 8.5%

Forms to be filled by the employees:

S.No

Form no.

Description

1 Form 2 Nomination form at the time of joining an organization.

2 Form 19 PF withdrawal after resignation.

3 Form 10 C

Pension withdrawal after resignation.

4 Form 10 D

Employee completed 10 year’s of service/attained 58 year’s age. The amount will be paid as pension.

5 Form 20 Claim PF amount for deceased member.

6 Form 13 For transfer of PF a/c.

7 Form 31 For withdrawing advance from PF account.

Forms to be filled by the employers:

S.No

Form No.

Due Date

Frequency

Description

1 Form 5 25th of every month

Within 15 days

Employee joining an organization.

2 Form 1025th of every month

Monthly Resigned Employee details

3 Form 12 A

25th of every month

Monthlycontains consolidated details of that particular month- new joinees, left employees and employer-employee PF contributions.

4 Form 3A 30th April Yearly Employee contribution details

5 Form 6A 30th April Yearly Employees consolidated contribution list.

6 Form 5A Inception Once When an organization registers at EPF, India.

Register/Login on EPF website:

Select your EPFO office:

Registration Process:

How to file PF?

• Login to http://esewa.epfoservices.in/

• Upload the ECR file

• On successful upload of the ECR file, a Summary page of uploaded ECR file will appear.

•  Fill in the details regarding EDLI and EPF/EDLI administrative/inspection charges.

• On click of submit button, a digitally signed PDF File will appear. 

• Once you approve the PDF file, a Challan will be generated with a TRRN (Temporary Return Reference Number) along with an acknowledgement slip for the uploaded ECR file. Print the challan and make the remittance.

Payment Options:

There are two options:

A: If you are a CINB (Corporate Internet Banking) customer of SBI you can make online remittance using the TRRN.

B: The challan along with DD/cheque can be depositted to any of the SBI branches.

Note: The challan generated will be valid only for 15 days.

How to fill ECR?

•  Step 1: Use any Spreadsheet (Open Office, Excel, Lotus etc,) for creating the member details 

as per the prescribed format and save the file in CSV (Comma delimited) format.

• Step 2: Open the CSV file in any text editor (notepad, edit plus, etc.,) and replace all “,” with 

“#~#”. Save the CSV file.

• Step 3: Change the file extension from CSV to TXT. Your file will be ready for upload.

Complicated???

We have a solution…

Updating PF info of employee in Application: Step 1

Updating PF info of employee in Application: Step 2

Generate ECR file using Greytip Online

ECR Report generation:

Contd…

How to generate reports?

Verify the correctness and click on Generate ECR File. This file has to be saved in Text format as required by the PF Department.

Reports > Reports Gallery > Statutory Reports - Monthly > PF - ECR Format

Sample:

Time for….