GUWAHATI, Jan 13 - The five-day grace period for making remittances to the Employees� Provident Fund Organisation (EPFO) by employers will be withdrawn from February.
�Recent technological advancements have empowered employers to compute wages and liabilities through the aid of computers. The facility now exists to file electronic challan-cum-returns (ECRs) and remit dues through Internet banking. This has substantially reduced the process and time taken in calculation of PF dues and its remittances in banks,� said B Lalzamang, Regional PF Commissioner-I, North East Region, in a statement.
Lalzamang added, �The concession of five days has outlived its basic purpose and utility. Accordingly, the concession of grace period of five days available to the employers for depositing contributions and other dues is withdrawn. This will apply from February 2016 for depositing contributions for the month of January 2016 that is payable in the month of February 2016. The employers will, therefore, need to deposit the remittances within 15 days of the close of every month from February 2016.�
Employers are required to pay the contributions and administrative charges within 15 days of the close of every month as per rules of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 under three schemes � Employees� Provident Funds Scheme, 1952, Employees� Pension Scheme, 1995, and Employees Deposit Linked Insurance Scheme, 1976.
Till now, a grace period of five days was allowed in addition to the statutory provisions. This grace period of five days was allowed in view of the practice of manual process of calculation of wages and dues of the employees on the part of the employers.
Besides, the remittances of the dues in the bank also required additional time in the manual set-up.
