Public Provident Fund (PPF) is considered the safest to invest. It is one of the highest interest-paying schemes in the country.
It is noteworthy that, Income tax exemption is also available for investment in PPF.
Hence, it is one of the most rewarding investments in the country. If you invest 1000 rupees per month in your PPF, then it reaches lakhs by the time you retire.
EPF investment up to Rs. 1.5 lakh per annum it qualifies for tax exemption under Section 80C of the Income Tax Act.
If you start working at 21 and earn Rs. 25,000 then by the time you retire you will have 1 crore in your account.
According to the recent EPFO norms, the employee and employer contribute 12 per cent of the basic salary and dearness allowance (DA) each towards EPF.
Deductions are made from the employee’s salary every month, which helps build a fund, which can be withdrawn on retirement.
It is however noteworthy that, the EPF investment calculations depend on the basic salary, DA, and interest rates. The interest rate on EPF investment is revised from time to time by the government.