PF Account: If you are a serviceman then you will know that every month a certain amount is deposited from your salary in PF Fund. The Employees Provident Fund Organization (EPFO) manages this fund. Deposit in PF Fund is a big capital for you. Tax and investment experts always insist that the amount deposited in a PF fund should be withdrawn only in a very mandatory condition. Experts also say that you get a lot of special benefits on deposits in PF account and PF funds, which are rarely seen in other funds. Here we are going to tell you about some such benefits.
Here are 5 special benefits related to PF:
– You get higher interest in EPF EPF accounts than many other schemes. The EPFO announces the interest rate on the PF amount for each financial year. In the current financial year, EPFO has decided to pay interest at the rate of 8.5 percent.
In this scheme you get the benefit of tax exemption under Section 80 (C) of Income Tax Act. In addition, the government allows partial withdrawal from deposits in the PF amount for employment and other requirements.
– The government has given special permission for partial withdrawal of PF shareholders even at the time of coronovirus epidemic. The scheme provides lifetime pension under the Pension Scheme, 1995 (EPS).
– If a member of EPFO EPFO is regularly contributing to the fund, the family member can avail the Insurance Scheme, 1976 in the event of his unfortunate death. This amount can be equal to 20 times the previous salary. This amount can be up to 6 lakhs. In this ratio the amount gets deposited in the PF account.
– You should know that employers and employees have to deposit an amount equal to 12 percent of the basic salary and allowances of the employee in the PF fund. Only employees of a company registered under the EPF Act can invest in PF funds on their own behalf.
EPFO: There is good news for the private sector employees. Recently the Central Government has announced the third economic package. After this, people suffering economic crisis in the Corona period will get relief. It is good news about PF that now the government will deposit PF money on behalf of some employees. This scheme will run till June next year. The government on Thursday announced the third self-sufficient India package to revive the economy hit by the Corona epidemic. The third package promulgated the self-reliant Bharat Rojgar Yojana. The scheme will benefit the company or organization registered with the Provident Fund Organization, which will provide jobs to unemployed or new people during the Corona period.
If a company with 50 employees or less employs at least two newcomers, or if a company with more than 50 employees employs at least five newcomers, the government is responsible for depositing the provident fund of the newly hired. Will raise The scheme will remain in force till June 30, 2021. For the next two years, the government will deposit the employees’ money in the PF. For an organization employing up to 1000 people, the central government will give the PF stake (24 percent of salary) of both the employee and the company. The central government will contribute 12 percent to the PF for an institution providing more than 1000 jobs.