: No penalty for delayed deposit of EPF: EPFO #FinanceIndia #StockMarketNEWS No penalty for delayed deposit of EPF: EPFO New Delhi, May 16 (KNN) Employees Provident Fund Organisation (EPFO) has decided

@StockMarketNEWS Tue 19 May, 2020

Posted in: #FinanceIndia #StockMarketNEWS

No penalty for delayed deposit of EPF: EPFO #FinanceIndia #StockMarketNEWS
No penalty for delayed deposit of EPF: EPFO New Delhi, May 16 (KNN) Employees Provident Fund Organisation (EPFO) has decided not to impose any penalty for delay in payment of employees provident fund contributions by firms during the nationwide lockdown.

Due to prolonged lockdown to control the spread of Covid-19 and other disruptions due to the pandemic, establishments covered under EPF & MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions on time.

Considering the difficulty faced by establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO has decided that such delays due to operational or economic reasons shall not be treated as default and penal damages should not be levied for such delay," government said in an official statement on Friday.

The EPFO has a provision of charging damages or penalty from the employers who are unable to deposit PF contributions as mandated under the EPF Scheme 1952.

Depending on the duration, delayed payment now attracts penalty of between 5% and 25% on the shortfall of payment of dues. However, the delay also attracts interest at the rate of 12% per annum, which will continue to attract in case of delayed payment.

"As of now, the penalty reprieve is for three wage months – March, April and May. However, the interest part will remain. Interest is levied at just 1% per month," said Central provident fund commissioner Sunil Barthwal.

In last month, May the government had allowed companies to separately file the Electronic Challan cum Return (ECR) and the payment of statutory contribution.

The EPFO had observed that in the current scenario the businesses and enterprises are not able to function normally and are facing liquidity or cash crunch to pay their statutory dues even though they are retaining the employees on their rolls.

"With a view to further ease the compliance procedure under EPF & MP Act, 1952, the creation and filing of monthly electronic-challan cum return (ECR) is separated from payment of the statutory contributions reported in the ECR," EPFO had said in a statement.