'These changes are expected to eliminate many data-entry problems that make the return filing process cumbersome in the current system.'
In a bid to streamline the return filing process for employers and establishments, the Employees' Provident Fund Organisation (EPFO) has launched a revamped electronic challan-cum-return (ECR) facility, effective from the wage month of September, according to a notification issued by the Central Provident Fund Commissioner on Friday, September 26, 2025.
Among other features, the revamped facility separates the return submission process from the payment generation process and introduces system-based validations to prevent the submission of incorrect ECRs.
It will also include provisions for the calculation of damages and interest under Sections 14B and 7Q of the Employees' Provident Fund Act.
The new system makes it mandatory to pay the interest amount under Section 7Q along with monthly contributions.
While Section 7Q holds employers liable to pay interest on any EPF dues from the date they become due until actual payment, Section 14B grants the EPFO authority to levy damages for defaults in payment.
However, the existing ECR format (.txt) remains unchanged.
Employers can continue to file three types of returns: regular, supplementary, and revised.
"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," said an official.
The revamped ECR will also alert employers in cases where contributions are being made under the Employee Pension Scheme (EPS) erroneously.
"For example, if an employee has a monthly wage of more than Rs 15,000, they are not covered under EPS. Yet, many employers continue to contribute under this head, leading to grievances later. The revamped ECR will flag all such accounts to the employer before filing, facilitating correct return submission," the official added.
EPS membership ceases at 58 years of age unless an employee opts for deferred pension.
The previous system lacked checks for continued remittance into the pension fund after 58, causing errors and grievances.
The revamped ECR will restrict contributions beyond 58 unless specifically flagged by the employer for deferred pension.
Feature Presentation: Aslam Hunani/Rediff