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.

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The EPFO also decided to waive off any interest liability and penalty in this extended period.

EPFO and labour ministry were getting a lot of requests and representations citing the employers' plight since they were stuck with closed establishments and limited resources during work from home because of the nationwide lockdown to combat COVID-19.

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"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.

"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.

CNBC-TV18 on Tuesday had reported that the representations for extension are under active consideration by the labour ministry and EPFO and a decision is likely by Wednesday.

Senior officials in the labour ministry say that the extension is likely to provide much relief and support to the employers which have disbursed wages for March 2020 but were unable to file the mandatory requirements of EPFO to its employees during the pandemic lockdown.

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, the statement 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 employees interest earnings in PF contribution for the month of March.”

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First Published:Apr 15, 2020 6:55 PM IST