If there is a tax exemption on the deposit, then what can be better than this. PF provides this facility to its account holders. PF is tax-exempt under Section 80C of the IT Act.
PF means that provident fund. As the name is, so is the work. PF is your future accumulated capital, which comes in handy during difficult times. During the job, a small deduction from your account can later become your support. After retirement, the government lays more emphasis on PF so that people can live a life of happiness. The PF, which comes under the Ministry of Labor and Employment, gives you the facility of life pension.
Talking about the importance of provident fund, more interest on its savings makes it even more attractive and effective. The interest received on the deposit can easily bear the expenses of life. The second major feature is pension. In the sector where people are working, organized or unorganized, pension is a big concern for them. People feel that if a certain income is arranged every month in old age, then life is cut easily. PF gives its important feature. PF provides the facility of giving lifetime pension under Section EPS 95.
If there is a tax exemption on the deposit, then what can be better than this. PF provides this facility to its account holders. PF is tax-exempt under Section 80C of the IT Act. That is, no tax is deducted on the interest received on the deposit amount of PF. The government has currently set this amount as Rs 2.5 lakh. In times of severe problems like pandemics and unemployment, the PF is the support of the people. This time it was seen in the corona epidemic that people spent all their expenses with PF money.
Why provident fund is so important
— EPFO (@socialepfo) April 12, 2021
It also emerges as a big propensity in unemployment. Unfortunately, if someone misses a job, if there is no means of employment, then you can take advantage of this deposit to start any business from running expenses. In order to provide maximum facilities to the people, the government has made many changes in the PF rules-law as compared to earlier so that there is no hindrance in withdrawing deposits. A major feature in the PF is that there is a provision for a minimum assured payment to the nominee on the death of the account holder. That is, after the death of the member, his nominee also gets the support of life.
Easy to update account
PF has made many tasks easier for its shareholders. Like now employees can also update the date of leaving their jobs. Unified members can easily do this by going to the portal and lawn with UAN and password. After login, the member should leave the job date and give the reason for it. Finally click on update and click. This will update the date of leaving your job. With this facility of PF, people can avoid many big mess and get rid of their work by putting in long queues.