The Employees’ Provident Fund Organisation (EPFO) has launched a revamped electronic challan-cum-return (ECR) facility, effective from the wage month of September. The initiative aims to simplify return filing for employers and establishments by reducing errors and making the process more user-friendly.

According to a notification from the Central Provident Fund Commissioner, these updates are expected to help employers navigate the filing system more smoothly.

RETURN FILING AND PAYMENT SEPARATED

A key change in the revamped ECR is the separation of return submission from payment generation. Employers will now submit returns first and generate payments afterward, reducing the risk of payment-stage mistakes.

The facility introduces system-based checks to prevent incorrect ECR submissions, catching common errors before they cause problems for employers or the EPFO.

INTEREST AND DAMAGES BUILT INTO SYSTEM

The updated ECR system features provisions for calculating damages and interest under Sections 14B and 7Q of the Employees’ Provident Fund Act.

Employers must now pay interest due under Section 7Q along with monthly contributions. Section 7Q requires interest on delayed EPF payments from the due date until payment, while Section 14B allows the EPFO to impose penalties for defaults. The

ECR file format remains unchanged, and employers can still file regular, supplementary, or revised returns.

INCREASED USER-FRIENDLINESS

An official explained, “In line with our vision of making EPFO a user-friendly organisation, these changes have been introduced. They are expected to eliminate many data-entry problems that make the return filing process cumbersome in the current system.”

The new approach is designed to make compliance easier and reduce filing mistakes that can cause delays.

INTEREST AND DAMAGES BUILT INTO SYSTEM

The revamped ECR will help employers avoid errors in Employee Pension Scheme (EPS) contributions. Some employers have been making EPS contributions to employees earning more than Rs 15,000 per month, who are not eligible for EPS benefits.

The improved ECR will flag such cases before filing, allowing employers to correct errors.

Simply put, with these updates, the EPFO aims to make compliance less confusing and reduce grievances caused by data entry mistakes. The new system promises a smoother filing experience and better accuracy for both employers and employees.

– Ends