EPF (Employee’s Provident Fund) is a standard deduction which is termed to secure the financial future of working individuals after their retirement. EPF – INDIA portal provides updated information about Deduction rates, Provident Fund Withdrawal (PF Withdrawal), EPF Universal Account Number Registration, EPF Calculator after latest Pay commission updates etc.
The EPF India website, in this website you are able to find all the information about the Employees’ Provident Fund Organization (EPFO). This organization helps those employees and workers by saving a part of their salary every month so that they can use it when they retire or if they need it for an emergency purpose. The website has a lot of useful things like checking your PF balance, learning how to withdraw your money and understanding the different rules. It’s made for workers who works in India who are part of the organized sector it is contributed to the govt sector people, which means companies and businesses that are registered with the government.
On the website, you can also learn about the EPFO’s three big programs which are released for the giving good services the EPF Scheme for your retirement savings, the EPS Scheme that gives you a pension and the EDLI Scheme is like an insurance if something bad happens to you while you’re working which means if you get heart attack aor somthing like this. The EPFO is one of the biggest organizations in the world for this kind of work, and it’s run by a group called the Central Board of Trustees. They make sure that the money is handled properly and that workers get their benefits when they need them. The website is a helpful tool for workers to keep track of their savings and make sure they’re ready for the future.
EPF vs PPF – Employee Provident Fund vs Public Provident Fund 2024
EPF or Employees’ Provident Fund is a savings program in India for people who work in companies or who works under the govt. It’s like a piggy bank that the government helps managing the amount of money which deposited by them. When you have a job both you and your boss put a little bit of your salary into this EPF account every month. This money earns interest, which means it grows over time. The interest rate changes with period time it could increase and decrease according to the market. but right now it’s 8.25% per year. You can’t touch this money until you retire or if you really need it for something important. It’s a good way to save for when you’re older and not working.
PPF stands for Public Provident Fund and it’s another savings option in India but it’s open to everyone. You don’t need to have a job to save money here. You can start with as little as Rs 500 and save up to Rs 1.5 lakh each year. The government decides how much interest you’ll get, and right now it’s 7.1% per year. This account lasts for 15 years but you can keep it longer if you want. The money you put in and the interest you earn are not taxed, which means you don’t have to give any of it to the government as tax.
Overview Of EPF Vs PPF Differences
EPF and PPF are both savings schemes in India, but they have some key differences. EPF or Employee Provident Fund is mainly for people who are employed or salaried Persons. Both employers and employees contribute to it usually 12% of the employee’s salary will be given to it. The interest rate is around 8.55% and is set by the government. EPF is mandatory for companies with 20 or more employees but smaller companies can also join. But remember to join in it you should have a group.
PPF or Public Provident Fund is open to all citizens including those who are self employed or not employed at all. It’s not mandatory for those who are not interested in it and people can decide how much they want to contribute, this scheme is starting from Rs 500 to a maximum of Rs 1,50,000 per year. The interest rate is fixed by the government at around 8% and remains the same unless the government decides to change it. While EPF is managed by EPFO (Employees’ Provident Fund Organisation), PPF doesn’t have a controlling body and people can open accounts at any registered bank or post office in India.
Tax Benefits of EPF and PPF
EPF Tax Benefits
EPF is for people who work for a company. The company and the worker both put
money into the EPF account.
The money you put in EPF is tax-free up to ₹1.5 lakh every year under Section 80C.
The interest you earn is also tax-free, and you don’t have to pay tax when you take the money out after 5 years of service.
PPF Tax Benefits
PPF is for everyone, whether you have a job or not. You can start a PPF account by yourself.
You can put between ₹500 and ₹1.5 lakh in PPF every year.
The money you put in PPF is tax-free under Section 80C.
The interest you earn is not taxed, and the money you take out at the end is also tax-free.
Qualities of EPF VS PPF
Safety
- Both EPF and PPF are safe because the government is involved.
- With EPF there’s a special group called EPFO, it looks after your money. Some of the money goes into stocks, which can be risky but the government makes sure you get your money when you retire.
- PPF is just as safe. The government makes sure it’s well-funded, so you get your savings when it’s time.
Liquidity
- Liquidity means how easily you can get your money before the time you agreed to save it for.
- EPF lets you take out some money if you’re not working for a month. You can get 75% of your savings, and if you’re not working longer, you might get all of it.
- But, if you take money out before 5 years, your EPF account stops earning interest after 3 years.
PPF is different. You can’t take money out for 5 years. But after that, you can.