Benefits of EPF

Benefits of EPF

1. EPF is free of tax after 5 years and the withdrawal before five years will not b deducted by the EPF office. Onus lies with you.
2. As one shifts from one organization to the other he can either withdraw or transfer the money. It is better to transfer the money to make the money free of tax after 5 years. All you need is to mention the EPF old number on the EPF form to help trace the date of joining the previous organization
3. 12% of basic salary is contributed toward EPF for which up to 1 Lac deduction under section 80 c is applicable. Employees can increase their contribution according to their own discretion, employers can also contribute 12% out of which only 3.67% goes to EPF while the rest is allocated in EPS ( employees pension scheme ), An EFF account holder who maintains the EPF account for 10 years will get guaranteed  retirement or pension benefits on a regular basis
4. The present interest rate is 8.5%

Written by Dipti Prasad Padhi

By : | Category : Business and Economy| Date : November 16,2011

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