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- PF contributions can only be withdrawn by the employee at the time of his/her retirement, barring a few exceptions.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.
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