The Employees’ Provident Fund Organisation (EPFO) has introduced a revamped electronic challan-cum-return (ECR) facility from the wage month of September, aimed at making return filing easier and error-free for employers and establishments, as per the latest notification issued by the Central Provident Fund Commissioner.The new facility separates the process of submitting returns from payment generation. It also includes system-based validations to prevent the filing of incorrect returns.The updated system will automatically calculate damages and interest under sections 14B and 7Q of the Employees’ Provident Funds Act.It will also make it mandatory for employers to pay interest under section 7Q along with monthly contributions.
Section 7Q requires employers to pay interest on pending dues until the date of payment, while section 14B allows EPFO to impose penalties for defaults in payment.Despite the changes, the existing file format for returns (.txt) will remain the same. Employers will be able to file regular, supplementary, or revised returns through the system.An EPFO official said the move is part of efforts to make the organisation more user-friendly.The changes are expected to reduce data-entry errors that have made return filing cumbersome in the past.The revamped system will also help prevent errors in pension contributions under the Employees’ Pension Scheme (EPS).For instance, employees earning more than Rs 15,000 a month are not eligible for EPS, but many employers mistakenly make contributions under this head. The new system will flag such errors before filing, ensuring correct submissions.Similarly, EPS membership ends at 58 years of age unless an employee opts for deferred pension.Earlier, the system did not stop remittances into the pension fund for employees above 58, leading to grievances.Now, the revamped ECR will automatically restrict contributions after 58 years unless specifically marked for deferred pension by the employer.The EPFO hopes these measures will simplify compliance, reduce mistakes, and provide greater clarity to both employers and employees
