Sir, I would like to know about PPF & EPF in details can you please help me. Thanks, Priyanka.
From India, Pune
1From India, Pune
Hi Priyanka Brief what are the details you wanna learn about PPF & EPF. PPF is not related to the companies. PPF shall be deposited in Banks and employer are nowheare related. EPF is from company
From India, Bangalore
From India, Bangalore
Hello Sir, Thanks for your reply I would like to know the percent deposited for PPF amount & by whom is it deposited. I would also like to know the EPF Percent Provided. Thanks, Priyanka.
From India, Pune
From India, Pune
There is nothing PPF related to Company. It is just EPF/PF
EPF is 12% basic from both Employee and Employer and there are other charges like EDLI, Admin charges
You can search from my earlier postings related to PF it is been clearly discussed
From India, Bangalore
EPF is 12% basic from both Employee and Employer and there are other charges like EDLI, Admin charges
You can search from my earlier postings related to PF it is been clearly discussed
From India, Bangalore
hi priyanka,
PF vs PPF: What's the difference?
A young reader wrote in telling us he has just landed his first job and has begun investing. He had a very basic question: What is the difference between PPF and PF?
We attempt to clear his doubts.
1. What is PPF and PF?
EPF/ PF
The Employee Provident Fund, or provident fund as it is normally referred to, is a retirement benefit scheme that is available to salaried employees.
Under this scheme, a stipulated amount (currently 12%) is deducted from the employee's salary and contributed towards the fund. This amount is decided by the government.
The employer also contributes an equal amount to the fund.
However, an employee can contribute more than the stipulated amount if the scheme allows for it. So, let's say the employee decides 15% must be deducted towards the EPF. In this case, the employer is not obligated to pay any contribution over and above the amount as stipulated, which is 12%.
PPF
The Public Provident Fund has been established by the central government. You can voluntarily decide to open one. You need not be a salaried individual, you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning.
Any individual can open a PPF account in any nationalised bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices.
The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.
2. What is the return on this investment?
EPF: 8.5% per annum
PPF: 8% per annum
3. How long is the money blocked?
EPF
The amount accumulated in the PF is paid at the time of retirement or resignation. Or, it can be transferred from one company to the other if one changes jobs.
In case of the death of the employee, the accumulated balance is paid to the legal heir.
PPF
The accumulated sum is repayable after 15 years.
The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account.
It can be extended for a period of five years after that. During these five years, you earn the rate of interest and can also make fresh deposits.
Save tax and get rich
4. What is the tax impact?
EPF
The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C.
If you have worked continuously for a period of five years, the withdrawal of PF is not taxed.
If you have not worked for at least five years, but the PF has been transferred to the new employer, then too it is not taxed.
The tenure of employment with the new employer is included in computing the total of five years.
If you withdraw it before completion of five years, it is taxed.
But if your employment is terminated due to ill-health, the PF withdrawal is not taxed.
PPF
The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C.
On maturity, you pay absolutely no tax.
5. What if you need the money?
EPF
If you urgently need the money, you can take a loan on your PF.
You can also make a premature withdrawal on the condition that you are withdrawing the money for your daughter's wedding (not son or not even yours) or you are buying a home.
To find out the details, you will have to talk to your employer and then get in touch with the EPF office (your employer will help you out with this).
PPF
You can take a loan on the PPF from the third year of opening your account to the sixth year. So, if the account is opened during the financial year 1997-98, the first loan can be taken during financial year 1999-2000 (the financial year is from April 1 to March 31).
The loan amount will be up to a maximum of 25% of the balance in your account at the end of the first financial year. In this case, it will be March 31, 1998.
You can make withdrawals during any one year from the sixth year. You are allowed to withdraw 50% of the balance at the end of the fourth year, preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.
For example, if the account was opened in 1993-94 and the first withdrawal was made during 1999-2000, the amount you can withdraw is limited to 50% of the balance as on March 31, 1996, or March 31, 1999, whichever is lower.
If the account extended beyond 15 years, partial withdrawal -- up to 60% of the balance you have at the end of the 15 year period -- is allowed.
The best tax-saving funds
The better option?
In both cases, contributions get a deduction under Section 80C and the interest earned is tax free.
Having said that, PF scores over PPF in two aspects.
In the case of PF, the employer also contributes to the fund. There is no such contribution in case of PPF.
The rate of interest on PF is also marginally higher (currently 8.50%) than interest on PPF (8%).
Public Provident fund
Created/updated on: 03/02/2007.
The Public Provident Fund Scheme is a statutory scheme of the Central
Government of India.
The Scheme is for 15 years.
The rate of interest is 8% compounded annually.
The minimum deposit is 500/- and maximum is Rs. 70,000/- in a financial year.
One deposit with a minimum amount of Rs.500/- is mandatory in each financial year.
The deposit can be in lumpsum or in convenient installments, not more than 12 Installments in a year or two installments in a month subject to total deposit of Rs.70,000/-.
It is not necessary to make a deposit in every month of the year. The amount of deposit can be varied to suit the convenience of the account holders.
The account in which deposits are not made for any reasons is treated as discontinued account and such account can not be closed before maturity.
The discontinued account can be activated by payment of minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.
Account can be opened by an individual or a minor through the guardian.
Joint account is not permissible.
Those who are contributing to GPF Fund or EDF account can also open a PPF account.
A Power of attorney holder can neither open or operate a PPF account.
The grand father/mother cannot open a PPF behalf of their minor
grand son/daughter.
The deposits shall be in multiple of Rs.5/- subject to minimum amount of Rs.500/-.
The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.70,000/-.
No age is prescribed for opening a PPF account.
Interest is not contractual but rate is notified by Ministry of Finance, Govt. of India, at the end of each year.
The facility of first withdrawal in the 7th year of the account subject to a limit of 50% of the amount at credit preceding three year balance. Thereafter one Withdrawal in every year is permissible.
Pre-mature closure of a PPF Account is not permissible except in case of death.
Nominee/legal heir of PPF Account holder on death of the account holder can not continue the account, but account had to be closed.
The account holder has an option to extend the PPF account for any period in a block of 5 years on each time.
The account holder can retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.
One withdrawal in each financial year is also admissible in such account.
The PPF scheme is operated through Post Office and Nationalized banks.
PPF account can be opened either in Post Office or in a Bank.
Account is transferable from one Post office to another and from Post office to Bank and from Bank to Post office.
Account is transferable from one Bank to another bank as well as within the bank to any branch.
Deposits in PPF qualify for rebate under section 80-C of Income Tax Act.
The interest on deposits is totally tax free.
Deposits are exempt from wealth tax.
The balance amount in PPF in PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability.
Nomination facility available.
Best for long term investment.
From India, Madras
PF vs PPF: What's the difference?
A young reader wrote in telling us he has just landed his first job and has begun investing. He had a very basic question: What is the difference between PPF and PF?
We attempt to clear his doubts.
1. What is PPF and PF?
EPF/ PF
The Employee Provident Fund, or provident fund as it is normally referred to, is a retirement benefit scheme that is available to salaried employees.
Under this scheme, a stipulated amount (currently 12%) is deducted from the employee's salary and contributed towards the fund. This amount is decided by the government.
The employer also contributes an equal amount to the fund.
However, an employee can contribute more than the stipulated amount if the scheme allows for it. So, let's say the employee decides 15% must be deducted towards the EPF. In this case, the employer is not obligated to pay any contribution over and above the amount as stipulated, which is 12%.
PPF
The Public Provident Fund has been established by the central government. You can voluntarily decide to open one. You need not be a salaried individual, you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning.
Any individual can open a PPF account in any nationalised bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices.
The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.
2. What is the return on this investment?
EPF: 8.5% per annum
PPF: 8% per annum
3. How long is the money blocked?
EPF
The amount accumulated in the PF is paid at the time of retirement or resignation. Or, it can be transferred from one company to the other if one changes jobs.
In case of the death of the employee, the accumulated balance is paid to the legal heir.
PPF
The accumulated sum is repayable after 15 years.
The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account.
It can be extended for a period of five years after that. During these five years, you earn the rate of interest and can also make fresh deposits.
Save tax and get rich
4. What is the tax impact?
EPF
The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C.
If you have worked continuously for a period of five years, the withdrawal of PF is not taxed.
If you have not worked for at least five years, but the PF has been transferred to the new employer, then too it is not taxed.
The tenure of employment with the new employer is included in computing the total of five years.
If you withdraw it before completion of five years, it is taxed.
But if your employment is terminated due to ill-health, the PF withdrawal is not taxed.
PPF
The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C.
On maturity, you pay absolutely no tax.
5. What if you need the money?
EPF
If you urgently need the money, you can take a loan on your PF.
You can also make a premature withdrawal on the condition that you are withdrawing the money for your daughter's wedding (not son or not even yours) or you are buying a home.
To find out the details, you will have to talk to your employer and then get in touch with the EPF office (your employer will help you out with this).
PPF
You can take a loan on the PPF from the third year of opening your account to the sixth year. So, if the account is opened during the financial year 1997-98, the first loan can be taken during financial year 1999-2000 (the financial year is from April 1 to March 31).
The loan amount will be up to a maximum of 25% of the balance in your account at the end of the first financial year. In this case, it will be March 31, 1998.
You can make withdrawals during any one year from the sixth year. You are allowed to withdraw 50% of the balance at the end of the fourth year, preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.
For example, if the account was opened in 1993-94 and the first withdrawal was made during 1999-2000, the amount you can withdraw is limited to 50% of the balance as on March 31, 1996, or March 31, 1999, whichever is lower.
If the account extended beyond 15 years, partial withdrawal -- up to 60% of the balance you have at the end of the 15 year period -- is allowed.
The best tax-saving funds
The better option?
In both cases, contributions get a deduction under Section 80C and the interest earned is tax free.
Having said that, PF scores over PPF in two aspects.
In the case of PF, the employer also contributes to the fund. There is no such contribution in case of PPF.
The rate of interest on PF is also marginally higher (currently 8.50%) than interest on PPF (8%).
Public Provident fund
Created/updated on: 03/02/2007.
The Public Provident Fund Scheme is a statutory scheme of the Central
Government of India.
The Scheme is for 15 years.
The rate of interest is 8% compounded annually.
The minimum deposit is 500/- and maximum is Rs. 70,000/- in a financial year.
One deposit with a minimum amount of Rs.500/- is mandatory in each financial year.
The deposit can be in lumpsum or in convenient installments, not more than 12 Installments in a year or two installments in a month subject to total deposit of Rs.70,000/-.
It is not necessary to make a deposit in every month of the year. The amount of deposit can be varied to suit the convenience of the account holders.
The account in which deposits are not made for any reasons is treated as discontinued account and such account can not be closed before maturity.
The discontinued account can be activated by payment of minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.
Account can be opened by an individual or a minor through the guardian.
Joint account is not permissible.
Those who are contributing to GPF Fund or EDF account can also open a PPF account.
A Power of attorney holder can neither open or operate a PPF account.
The grand father/mother cannot open a PPF behalf of their minor
grand son/daughter.
The deposits shall be in multiple of Rs.5/- subject to minimum amount of Rs.500/-.
The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.70,000/-.
No age is prescribed for opening a PPF account.
Interest is not contractual but rate is notified by Ministry of Finance, Govt. of India, at the end of each year.
The facility of first withdrawal in the 7th year of the account subject to a limit of 50% of the amount at credit preceding three year balance. Thereafter one Withdrawal in every year is permissible.
Pre-mature closure of a PPF Account is not permissible except in case of death.
Nominee/legal heir of PPF Account holder on death of the account holder can not continue the account, but account had to be closed.
The account holder has an option to extend the PPF account for any period in a block of 5 years on each time.
The account holder can retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.
One withdrawal in each financial year is also admissible in such account.
The PPF scheme is operated through Post Office and Nationalized banks.
PPF account can be opened either in Post Office or in a Bank.
Account is transferable from one Post office to another and from Post office to Bank and from Bank to Post office.
Account is transferable from one Bank to another bank as well as within the bank to any branch.
Deposits in PPF qualify for rebate under section 80-C of Income Tax Act.
The interest on deposits is totally tax free.
Deposits are exempt from wealth tax.
The balance amount in PPF in PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability.
Nomination facility available.
Best for long term investment.
From India, Madras
Hi, Priyanka, Syedhussain is absolutly right & pl go through the epf site for more information and try to get one by one . Rgds, Tanwar
From India, Ambala
From India, Ambala
pl tell me about pf calculation, service tax, income tax, how to calculate ? pl let me know
From India, Mumbai
From India, Mumbai
Hello Syedhussain,
Thanks for this information. It is extremely informative and moreover is written in simple language than jargons used which goes over the head. Thanks a lot for this simple and clear and much needed information.
Keep Posting!!!
From India, Madras
Thanks for this information. It is extremely informative and moreover is written in simple language than jargons used which goes over the head. Thanks a lot for this simple and clear and much needed information.
Keep Posting!!!
From India, Madras
Dear Friends, we need EPF ECR upload details as per pf norms i will try lot of time but till now in error the file kinly give a suggestion how can i do. Thanks and Regards lachiya
From India, Madras
From India, Madras
Hi Lachiya
There are are man postings regarding EDR in previous conversations.
https://www.citehr.com/401414-new-ec...ubmission.html
https://www.citehr.com/401776-new-pf...-facility.html
follow the above steps
else call me
From India, Bangalore
There are are man postings regarding EDR in previous conversations.
https://www.citehr.com/401414-new-ec...ubmission.html
https://www.citehr.com/401776-new-pf...-facility.html
follow the above steps
else call me
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Employees' Provident Funds (Third Amendment) Scheme 2008 - 0.pdf
EMPLOYEES’ PROVIDENT FUNDS & MISC. PROVISIONS ACT, 1952.ppt