Employee Provident Fund (EPF) is a popular investment scheme for salaried individuals working in a private organization. It has many benefits apart from tax saving. EPF is considered one among the easiest and secured investments for the future. Generally, the organizations automatically start an employee PF account when he/she starts working. The EPF is an employer and employee monthly contribution from his/her salary. An employee has to continue his/her working tenure in an organization to avail the EPF, as it is only for the salaried employees. The sizeable bulk of money created by the monthly contribution helps an individual either during the retirement years or for any emergency/special occasion in life.
Benefits of Employee Provident Fund (EPF) There are many advantages of EPF but the most know benefit is tax saving. No extra efforts are required for EPF as the monthly installments are automatically deducted from the salary. Some of the benefits of EPF are mentioned below: Tax Saving – the interest rate is tax-free on the funds earned in the Employee Provident Fund account. If a person withdrawal the funds at the time maturity then also it is tax-free. EPF is the contribution of both the employee and the employer so; the employer’s contribution to the EPF is tax-exempt. An employee can also avail of tax deductions u/s 80ctowards the monthly contributions. Long term investment – EPF offers an employee with the added financial security as the scheme incentivizes to not withdraw funds before maturity. Easy Accessibility – If an employee wants to change the job, then transferring the EPF account is now done automatically with the submission of Form 13. An employee just needs to link his/her Aadhaar with UAN.
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