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EPF New Rule: Rules after the budget change for EPF, know which will be a better retirement saving plan for you

retirement saving plan After today’s retirement, there are many plans in the market so that there is no problem about money in future. In which people secure their further life by investing. However, most people rely on the Employees Provident Fund (EPF) and the National Pension System (NPF). It also provides good interest besides saving tax.




Employees are required to deposit at least 12% of their salary in an EPF account. The institute and the company also invest the same amount. This contribution is deposited in the employee’s retirement fund. After the age of 58, the full amount can be withdrawn. At the same time, there is a facility to partially withdraw money for medical emergency, house building, education etc.

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The National Pension System is a retirement retirement scheme. It was launched by the Central Government on 1 January 2004. After 2009, the scheme became applicable to private sector employees as well. Any Indian citizen who is 18 to 60 years old. That account can be opened. There are two types of accounts in this scheme. Whoever deposited money in Tier-1 cannot withdraw it prematurely. Whereas in Tier-2, the account holder can deposit and withdraw money at his own will.

PF contribution interest will be taxed




Presenting the budget, Finance Minister Nirmala Sitharaman said that the interest from the contribution of up to Rs 2.5 lakhs per annum in PF will be tax free. This will especially affect high-income employees. This new proposal will come into force from 1 April 2021 or later.

What is better NPF and EPF?

Returns on NPS depend on NAVs, which can increase and decrease at any time. Whereas PF returns at the declared interest rate annually. PF provides safety and assured returns. At the same time, giving good returns with NPS risk. Both these options give discounts and returns in tax.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ praveshmaurya24@gmail.com
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