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ESIC Return Filing

As employer in India, it is your responsibility to ensure the well-being of your employees and provide them with social security and medical health benefits. ESIC (Employee State Insurance Corporation) was established by the Indian government to provide these benefits to workers. The ESIC return filing is an essential requirement for employers registered under the scheme, and it is crucial to file them before the due date to avoid penalties and legal consequences. In this article, we will discuss how to file ESIC returns in India and the benefits of filing them. So, let’s dive into it.

1. What is ESIC and its importance?

ESIC, or the Employee State Insurance Corporation, is a statutory body that primarily focuses on providing social security and medical benefits to employees in India. The ESIC scheme was devised to protect employees against financial distress that may arise due to events like sickness, disablement, or death due to employment injuries. With headquarters in New Delhi and various regional and local offices throughout the country, the ESIC is responsible for the administration of the ESI Scheme.

The ESIC is incredibly important to Indian employees, offering complete medical care and financial assistance to those who are unable to work due to sickness, maternity, or employment injury. Not only does the scheme cover registered employees, but it also extends medical care to their family members. As of 2019, the ESI Scheme covers 3.14 crore employees in India with the total number of beneficiaries summing up to 13.32 crore.

Perhaps the most significant aspect of the ESIC is that it is self-financed and contributory in nature. Both employers and employees contribute monthly to the scheme, with the amount depending on the employee’s wages. This contributes to making the ESIC a self-sustaining organization, allowing it to continue providing benefits to employees across the country. [1][2]

2. Steps to register for ESIC return filing

ES return filing in India is an important process for employers to provide financial and medical support to workers. If you need to register for ESIC return filing, here are the steps you need to follow:

1. First, ensure that your company is registered under the Employee State Insurance Act 1948. If not, register yourself under the same.

2. Collect all necessary documents for ESIC registration including a registration certificate, address proof of the establishment, bank statements of the organization, and a list of employees with their monthly compensation in detail.

3. Fill out the Form-1 provided by the government’s official website and submit it online, providing all the required information and documents.

4. Double-check all the information you have provided on the form and supporting documents before submitting to avoid any errors.

5. After registration, ensure you make the required changes whenever you hire new employees for the company.

It is important to note that failing to register for ESIC return filing can lead to legal actions. Therefore, it is best to ensure that you complete the process promptly to stay on the right side of the law. As Vakilsearch states, “Save Taxes with Expert Assisted ITR filing” and ensuring you register for ESIC return filing is key to doing so and staying compliant with Indian laws. [3][4]

3. Documents required for ESIC registration

To register for the Employee State Insurance (ESI), you need to have all the required documents in place. Some of the essential documents include a copy of each license issued in the establishment’s name, a financial statement of the company, a list of all the employees directly employed by the contractor or company, a lease or rent contract copy, and a copy of each director or partner’s identity. You also need a copy of the board’s decision, if applicable.

Additionally, while registering, you need to provide information about the employee, such as their father/husband’s name, bank details, information about nominees, and employer’s address and phone number. It is important to note that all factories employing 10 or more workers must get registered under the ESI act. And the number of employees required for an organisation to be eligible for registration under the ESI plan ranges from 10 to 20, depending on the location.

Hence, make sure you have all the necessary documents in place before registering for ESI to avoid any delays or rejections. As the saying goes, “well begun is half done.” A smooth registration process makes it easier for the establishment to file ESIC Returns on time. [5][6]

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