In a bid to relax mandatory electronic challan return (ECR) filing by the employers, the retirement fund body -Employees’ Provident Fund Organisation (EPFO) on Wednesday, extended the deadline by a month, from current April 15 to May 15 for the filings which were due for March 2020.
The EPFO also decided to waive off any interest liability and penalty in this extended period. This would give some respite to employers stuck with closed establishments following a nationwide lockdown since March 25.
“The due date for March 2020 is ordinarily April 15, 2020. So grace period of thirty days has been allowed to the establishments covered under EPF& MP Ac, 1952 to remit the contributions and administrative charges due for March,” EPFO said in a statement on Wednesday.
“The employers disbursing the wages for March 2020 not only get relief of extension of due date for payment of EPF dues for March 2020 but also avoid liability of interest and penalty, if they remit on or before May 15, 2020,” it added.
Labour ministry is of the view that the above decision will support and provide relief to employers of establishments that have disbursed wages for March 2020 to its employees and an incentive to employers for wage payment during COVID-19 pandemic.
The move is in keeping with the objective of the Pradhan Mantri Garib Kalyan Yojana to prevent disruption in employment and ensure earning to employees to help them fight the pandemic, it said.
Hailing the move, Saraswathi Kasturirangan, Partner, Deloitte India said, “Significant relaxations in timelines have been provided earlier for tax-related year-end compliances. The current relaxation in respect of extending the due date for PF contributions for the month of March to 15 of May will certainly help companies plan their cash flows better. It could, of course, have an impact on employee’s interest earnings in PF contribution for the month of March.”
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