EPF: 5 Facts You Should Know Before Investing


EPFO governs Employee's Provident Fund, and every salaried employee is eligible to enjoy this scheme.

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  • If your company is having more than 20 employees, then the EPF Act is applicable, and even if the number falls later, then the provident fund will continue to be deducted from your salary.
  • The interest rate of the provident is declared by EPFO every year.
  • You and your employer are equally involved in the contribution, and the percentage of the amount that gets deducted from your salary is the same contribution that your employer will make.
  • The lock-in period of Employee’s Provident Fund is five years which means if you can enjoy the tax benefit only if you are in the service for consecutive 5 years.
  • In case you switch your job, you can transfer your existing Employee’s Provident Fund account to your new employer to enjoy tax-free fund.
Premature withdrawal is tax-free only after the lock-in period.



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