What Happens If We Deposit PF One Day Late? Seeking Advice on Possible Penalties and Implications

The 15th of every month is the last day to deposit PF for the previous month. Due to some reason, although we issued a cheque on 15/11/2012, we could not deposit it. We are planning to deposit it on 16/11/2012.

Could you please inform us about the possible problems we might face? Do we need to pay any penalty for the delay of one day? What will be the immediate effects or implications at the time of annual returns?

Your prompt response is highly appreciated.

Regards,
Geet

Hi, if the cheque payment has a 5-day grace period, it will be cleared before the 20th. The cheque should get cleared before the 20th.

As you know, the 15th is the last due date to submit EPF contributions. However, if you have a valid reason for submitting late, you may be excused because after the 15th, six grace days are given. This means you can submit the challan until the 21st, but not every month. That's why you shouldn't worry.

Regards,
Geet

Hello,

You can refer to the IT Act Manual, which clearly states that PF payment is due on the 15th, with a grace period of 5 days due to check payments, making the deadline the 20th.

Thank you.

Grace Period for PF Deposit

The 15th of November being closed for banks, you are well within the grace period. No penalty. No effect anywhere.

Thank you.

There is a grace period of 5 days, i.e., up to the 20th in case it could not be deposited by the 15th.

Regards,
A. K. Chandok
RPFC (Retd.)
www.akchandok.com

One more thing I would like to add here... Please do not be so afraid of these petty issues, whether 1 day late or 10 days late. In my 15 years of experience, I have observed that the ground reality is that the PF authorities' focus during inspections is usually elsewhere rather than on your late contributions. However, I would still appreciate it if you adhere to your own compliance management and meet the deadlines.

Wishing you the best of luck!

Regards,
RK

The normal grace period is 4-5 days only, but not for frequent delays. Upon submission after the due date, the department's computer starts calculating interest based on penalty clause 7Q and damages under 14B. Moreover, if the payment is further delayed beyond the grace period, the Income Tax department begins imposing penalties during the account scrutiny. This implies that penalties are applicable from both sides. Therefore, it is advisable to make payments within the stipulated time to avoid any additional charges.

Regards,
JACL

Is there any circular from the PF department which states that a grace period of 5 days for cheque payments is provided?

Regards,
GEM

Dear Geet,

I believe that as per PF rules, a 5-day grace period will be allowed from the due date if you have deposited the cheque. Also, check with your concerned PF Office. Furthermore, during the Tax Audit, the auditor may report this delay in the Tax Audit Report.

Regards,
Rapolu HS

Dear all,

Please find attached an old circular that allows a grace period of 5 (five) days for the payment of PF contributions. This circular remains valid at present.

Regards,
N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com