If you come from salaried class then you will be aware that every month a certain amount is deposited from your salary into PF Fund. The Employees Provident Fund Organization (EPFO) manages this fund. Actually, a deposit in a PF fund is a big capital for you. Tax and investment experts always insist that deposits in PF funds should be withdrawn only in a very unavoidable situation. Experts argue that you get several types of exclusive benefits on the amount deposited in PF account and PF fund, which are rarely seen in other funds.
Let us know about the special benefits related to PF:
You get higher interest in 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 per cent.
On this scheme you get the benefit of tax exemption under Section 80 (C) of Income Tax Act.
The government allows partial withdrawal from the amount deposited in the PF amount for employment and other requirements. The government has given special permission to the partial withdrawal of PF shareholders even during the time of Kovid epidemic.
Under this scheme, life pension is provided under the Pension Scheme, 1995 (EPS).
If a member of the EPFO is regularly contributing to the fund, the family members can avail the Insurance Scheme, 1976 in the event of his unfortunate death. This amount can be equal to 20 times the last salary. This amount can be up to 6 lakhs maximum.
The amount gets deposited in PF account in this ratio:
You will be aware that the employer and employees have to deposit an amount equal to 12 percent of the basic salary and dearness allowance 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.