Electronic Challan Cum Return, or ECR for short, is also referred to as E-Challan Return. Employers are required to fill out and submit this electronic monthly return using the online employer portal. The return will include basic information about both new and current members as well as member-by-member wage and contribution details. (members who started or stopped working during the pay period for which the return is posted).
After the uploaded ECR is accepted, a challan is generated, which the employer uses to pay the outstanding balance online. Every ECR will therefore be associated with a challan that has been submitted, and any ECRs that have been uploaded but not yet paid will expire 12 days from the challan generation date. Employees will no longer have to file monthly and annual paper returns thanks to the monthly ECR upload.
ECR’s advantages
- Employers do not need to submit Forms 5/10, 12A, 3A, and 6A if they upload ECR.
- Since ECR is done electronically, no paperwork is required.
- An internal automated mechanism will notify employers via SMS when payments are made.
- Annual accounting slips are easily viewed by employers.
