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  • How to understand the EPF challan

    As you know, the Employee Provident Fund is a scheme that has been put in place to help employees create some savings throughout the duration of their service years. This scheme requires that employees and employers contribute a specific sum towards the provident fund. For the employee it is not a matter of concern since the employers are tasked with deducting and depositing said amounts in EPF accounts but if you are an employer then you will need to know how to understand the receipt that is generated when the payments are made. It may look rather confusing at first glance but it is actually very easy to understand it.

    Fields in the EPF challan

    If you have seen the EPF challan, you may have some questions about what those fields actually stand for and how they are to be filled. What follows is an explanation of these fields and the data they represent.

    • Establishment code no: This is the code that is assigned to the company to identify it. It is unique to each establishment and is generally mentioned in the PF number.
    • Paid by cheque/cash: This is a bit obvious as it refers to the mode of payment chosen by the employer.
    • Dues for the month of: Here the employer can indicate the month or months for which they are making the payments on behalf of the employer and the employee.
    • Total number of subscribers and total wages due: This will refer to the number of people who have actually signed up for the EPFO scheme.
      • Account 1: Deposits made under A/c 1 refer to payments made towards the provident fund and is inclusive of both employer and employee contributions.
      • Account 10: This is a section where contributions to pension funds are mentioned.
      • Account 21: This is the part that deals with the Employee Deposit Linked Insurance and contributions made towards it.

    Particulars in the EPF Challan

    Particulars are the table where all the various amounts are mentioned in front of the appropriate heading.

    • Employers share of cont.: This is the total amount that the employer is paying for the specified period.
    • Employees share of cont.: This will be the total amount that is being contributed by the employee towards the EPF for the specified period.
    • Admin charges: These are the administration charges for the provident fund management.
    • Insp charges: Inspection charges are those that are levied on contributions made towards the Employee Deposit Linked Insurance scheme.
    • Penal damages: Penal damages refer to any penalties that the employer may have to pay as a result of late remittance of EPF contributions.
    • Misc payments: This will contain the details of any miscellaneous payments that are being paid by the employer for the contributions for the period specified.

    Below the particulars is the segment where the employer fills in details of the total amount that needs to be remitted, the name of the establishment and its address. It also contains the fields for the depositor to sign the challan and the details of the cheque or demand draft being used to make the payment.

    The last bit of information is on the bottom right hand side of the challan and is meant for the bank to enter its acknowledgement of the payments.

    EPF challan online

    There is no need to actually create a EPF challan from scratch these days. The EPF portal allows you to generate the challan online once you have entered all the relevant details. The challan can then be taken to a bank with the payment cheque or DD and remitted with the bank.


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