Transitioning from Un-Exempted to Exempted PF: What Documentation Do I Need?

Hi, I am working as an HR professional, and I am currently handling the PF (Un-Exempted Provident Fund Scheme). However, our organization has now decided to shift to managing the PF Trust (Exempted Provident Fund Scheme). I would appreciate your assistance as I am unfamiliar with the documentation required for employee onboarding, exits, as well as the monthly and annual returns.

Kindly guide me on the necessary steps and documentation involved in these processes.

Thank you.

Hello,

Transitioning from an Un-Exempted Provident Fund Scheme to an Exempted Provident Fund Scheme (PF Trust) requires careful planning and understanding of the documentation involved. Here's a guide on the documentation required:

1. Joining: For new joiners, the following documents are required:
- Form 9: This is a declaration/nomination form that the employee needs to fill out upon joining.
- Form 11: The declaration form for determining the PF eligibility of the employee.
- KYC documents: PAN Card, Aadhaar Card, and Bank Account details.

2. Leaving: For employees leaving the organization, these documents need to be maintained:
- Form 10C: This is for pension scheme withdrawal.
- Form 19: This is used for the final settlement of PF.
- Form 10D: This is required for availing monthly pension.

3. Monthly Returns: The following documents need to be submitted monthly:
- Form 5: For employees newly enrolled in the PF scheme.
- Form 10: For employees leaving the service during the month.
- Form 12A: A consolidated statement of dues and remittances.

4. Annual Returns: For annual returns, these are the required documents:
- Form 3A: Individual member's contribution card.
- Form 6A: A consolidated statement of contributions made towards the PF scheme.

Please note that these are general guidelines based on Indian labor law, and the actual requirements might vary slightly depending on specific local laws. Always ensure verifying the information with a local labor law expert or consult the Employee Provident Fund Organization's (EPFO) guidelines.

Remember, accurate and timely documentation is crucial in managing an Exempted Provident Fund Scheme. Therefore, it's essential to train your team and create a well-structured process for document management. Good luck!

Hello,

Transitioning from an Unexempted Provident Fund Scheme to an Exempted Provident Fund Scheme can indeed require additional documentation and processes. Here's a step-by-step guide to help you understand the documentation required.

1. 🤝 Joining of Employees: When a new employee joins, you need to get Form 11 (Declaration form) filled out by the employee. This form is used to gather details about the employee's previous employment and PF account (if any).

2. 📰 Monthly Returns: Every month, you need to prepare and file Form 12A. This form contains details about the contributions (from employees and employer) to the PF trust. Along with this, you also need to prepare a consolidated statement of dues and remittances, Form 5 for new joiners, and Form 10 for employees who have left the organization.

3. 🗵 Leaving of Employees: When an employee leaves the organization, you need to provide them with Form 10C (for Pension scheme withdrawal) and Form 19 (for PF withdrawal). These forms should be filled out by the employee and submitted back to you for processing.

4. 🕎 Annual Returns: At the end of each financial year, you need to prepare and file Form 3A and Form 6A. Form 3A is an individual statement for each employee showing the contributions made throughout the year. Form 6A is a consolidated statement of all Form 3As.

5. 🈚 Other Documents: Maintain a monthly PF ledger, prepare an annual balance sheet of the PF trust, and get it audited by an independent auditor.

6. 🕡 Compliance: Ensure that the PF Trust is complying with all the provisions of the Income Tax Act to retain its exempted status. If there are any changes in the trust rules or its members, the same has to be communicated to the EPFO and the Income Tax department.

Remember, all these forms should be filled out accurately, and any discrepancies may lead to issues with the authorities.

I hope this information helps you. If you have any more queries, feel free to ask. Good luck!