 Difference between EPF and PPF New Rules.EPF & PPF कुछ महत्वपूर्ण जानकारियां| |
1.
Employees Provident Fund (EPF)
2.
public provident fund (PPF)
EPF
and PPF both are popular choice when it comes to retirement planning because
they keep your investment safe guarantee Returns. it is one of the most
important things to do to ensure your Golden Years are as stress free as
possible.
EPF
is governed the (ministry of labour and employment)
by the Employees Provident Fund Organisation and is offered only to salaried
individual. this is a mandatory Saving Scheme that is applicable to employees
of a company with more than 20 employees for employees whose salary is about
the minimum amount stipulated.
The
PPF (public provident fund) on the other hand is offered by bank post office to
everyone regardless of whether you are salaried or not.
investing in EPF is a mandatory for the salaried people up to
12% of your basic + D A is detected contributed to your EPF account. added to
this is your employee’s contributions which is equal to yours also, you can
increase your contribution you can request to your employer for apply a VPF
voluntary retirement scheme which is an extension of EPF, they they allow minimum
deposit rupees 500 to maximum 1.5 lakhs.
The interest rate is declared by the EPFO every year, which
is decided by government of India on general budget.
Tax benefit rules the amount you get when your EPF Matures is
tax-exempt only if you have a good track record of at least five years of continuous service. if you change your job or company so you can continue the
same account a new company also in case in between you are unemployment your
EPF interest for that particular period is taxable. In contrast PPF has an EEE
tax status. this means your PPF investment is tax free at all leaves
contribution accumulation and maturity.
An
EPF account has a locket lock-in period of 5 years so you can get tax benefit
if you want to withdraw before that you have to pay 30% TDS also EPF have some
tough rules if you not contributed more than a year maybe your account will get
suspend.
Other
hand EPF has a locket period in 15 year. Follow Us: |
Monday, January 14, 2019
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