Wednesday, October 17, 2018
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What is PF and PPF account? Diffrence, Benefit and how to open a PF and PPF account?

PF And PPF Account:  Hello everyone, many questions come to mind about the PF and PPF account but you didn’t get the right satisfied answer in this post you will get the full information about the PF and PPF account.

 Solved Queries;

  • What is PF and PPF account? (All about the PF and PPF account)
  • Difference Between PF and PPF account?
  • How can be and where to open PPF account?
  • PPF account benefit.
  • How to save tax through the PPF account?

Let me solve your all queries about all PF and PPF account So Let’s start to know one by one all your Question Answer.


Difference between the EPF And PPF Account

If you want to choose the best investment plan than you should know about the difference between the EPF(Employee Provident Fund ) and PPF(Public Provident Fund. Let’s know in short difference between the EPF and PPF.

 

        EPF( Employee Provident Fund) Account        PPF (Public Provident Fund) Account
Employee’s Provident Fund (EPF) is a retirement benefits scheme that’s available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO) and any company with over 20 employees is required by law to register with the EPFO. Public Provident Fund (PPF) scheme is a popular long-term investment option backed by Government of India which offers safety with attractive interest rate and returns that are fully exempted from Tax.Investors can invest minimum Rs. 500 to maximum Rs. 1,50,000 in one financial year and can get the facilities such as loan, withdrawal, and extension of account

This is the simple difference between the EPF and PPF account. Now we will discuss in detail about the EPF and PPF account.


All About The PPF Account (Public Provident Fund )

In this section, we will discuss all the PPF(Public Provident Fund) from the opening an account till benefit, Interest and tax saving tips and everything about the Public Provident Fund Account

What is PPF Account (Public Provident Fund)?

People can deposit funds in PPF accounts (Public Provident Fund accounts) for a fixed period of time to earn returns on their savings. The PPF of interest rate for the financial year 2016 – 2017 was 8.7%. This rate has been revised in the Union Budget 2017 for FY: 2017 – 18 to 8.1%.

PPF (Public Provident Fund) was launched to encourage savings across income classes, minimum deposit requirements are very low and affordable. They are also tax-free accounts, easily accessible, safe (being backed by the government) and simple to understand, making them a popular investment avenue for a large majority of individuals in India.

PPF accounts can be opened at any nationalized, authorized bank and authorized branches/post offices. PPF accounts can be opened at specific private banks as well. These accounts can be opened by filling out the required forms, submitting the relevant documents and depositing the minimum pay-in at such branches/offices that have been authorized for the same.

Interest rates are set and announced by the government of India. Interest is calculated for a financial year according to the rate announced for the said year i.e., unlike bank FDs the rates are not fixed for the entire tenure of the holding. The maximum amount that can be deposited in the account is also subject to change.

The period from April 1st – March 31st i.e. a financial year is considered to be a deposit year for a PPF account. E.g. for an account opened in November 2015 – 2016, Year 1 will be April 1st, 2016 – March 31st, 2017.

How PPF ( Public Provident Fund ) Is Work and Features

IF you want to invest in PPF account to the future you should be know all the Features of PPF (Public Provident Fund) and work. So Let’s know the all features and work:

  • Interest rates: Interest rates are announced by the central government periodically, usually annually. Interest earned is compounded yearly. (The current rate of interest on a PPF account is fixed at 8.1% p.a.)
  • Tenure: 15 years; account continuance is allowed beyond maturity for 5 years at every renewal, with or without making additional deposits.
  • Initial investment/deposit: Rs.100 to open the account
  • Annual Deposit amountRs.500 – Rs.1.5 lakhs per year (can be revised as per government directive)
  • Deposit frequency: A deposit has to be made every year, for 15 years, to keep the account active. Failure to make the minimum annual investment will render the account inactive.
  • Deposit modes: Via cash, cheque, PO, DD, online funds transfer; as a one-time deposit or up to 12 installments.
  • Withdrawals: Partial premature withdrawals can be made every year from year 7; withdrawals are subject to conditions. Complete withdrawal of funds can be made only at maturity.
  • Tax advantages: Interests are tax-free and deposited amounts are tax deductible U/S 80C of the Income Tax Act. Withdrawals are exempt from wealth tax.
  • Nomination: Allowed; on opening the account or after.
  • Fund transfer: Funds/accounts cannot be transferred between people but can be easily transferred between bank branches or post offices for free.
  • Loan facility: Loans can be availed against funds held in the PPF account from year 3 to year 6.
  • Renewal: Renewal or extension of the scheme is allowed, for an extra 5 years at a time.
  • Joint accountsNot allowed, you can not open the joint account.

Benefit of Investing in a PPF(Public Provident Fund)

  • Attractive long-term investmentsWith a deposit period of 15 years and a lock-in period of 7 years, these accounts serve long-term investment goals. With interest rates compounded annually, effective returns tend to be more attractive via bank FDs.
  • Useful for retirement planning: Long-tenures, compounded, tax-free returns and capital protection make this an ideal option for building a retirement corpus.
  • Tax-free returns: Tax-free interest and withdrawals and tax-deductible investments.
  • Low-risk: Being government-backed, there is low risk of default.
  • Easily accessible: PPF accounts can be opened at nationalized, public banks or post offices and select private banks, all of which have wide reach. Accounts can be opened online as well.
  • No attachment: PPF funds can’t be attached under court order or laid claim to by creditors.

This is all benefit of the PPF(Public Provident Fund) If you are not an employee or if you an employee you can simply invest in the PPF(Public Provident Fund) and take the long term benefit from it.

If you want to open an account or invest in the PPF account you should need to follow some rule of the PPF.

Eligibility – For Open A PPF Account?

If you now decided to open a PPF account after know the the all information about the PPF(Public Provident Fund), so you should know that who can open account and all eligibility criteria:

Who Can Open A PPF Account

  • Only one PPF account can be opened per person. Resident Indians, 18 years or older, can open a Public Provident Fund Account. There is no upper age limit for opening this account.
  • Accounts can be opened for minors. Minors are those below the age of 18 years. However, the maximum limit of Rs.1.5 lakhs per year applies to deposits made in the minor and the major’s/guardian’s account, collectively. Grandparents cannot open an account in the names of their minor grandchildren.
  • Non-resident Indians (NRIs) cannot open a PPF account. However, account-holders who leave the country and obtain non-resident status after having opened a PPF account can continue to maintain their accounts until it matures i.e. until the end of the account’s 15 year term. NRIs are restricted from extending account tenures at maturity.
  • HUFs cannot open a PPF account, effective 2005. Those accounts opened by HUFs before May 13, 2005 can be continued until maturity without further extensions. An individual cannot open an account for an HUF (Hindu Undivided Family).
  • Foreigners cannot open a PPF account.

Necessary Document For Opening A PPF(Public Provident Fund)  Account

Documents required to open a PPF account are KYC documents such as identity proof, address proof and signature proof. These commonly include the latest version of a person’s

  • Passport, PAN Card, Aadhar Card, Driving License, Voter’s ID, Employer’s letter, Utility Bill, Rental/Lease Agreement, Bank Account Statements, Ration Cards, Signed Cheque
  • Photographs
  • The account opening form, along with nomination form if nominees are being named.
  • This is not an exhaustive list. Banks may request additional documents if necessary.In case of minors, age proof will be required i.e. the minor’s birth certificate or school certificate.

This is all eligibility and documents you need, when you open a PPF (Public Provident Fund) Account. Now many readers think about where we can open a PPF account? Don’t worry readers I am here to tell you that where you can apply for the PPF account? in detail full process:

Process Of Opening A PPF Account And Where You Can Open An PPF Account

PPF accounts can be opened either by visiting a post office or bank-branch or online via internet banking. Operating accounts online is gaining increasing popularity among the masses owing to the convenience it offers. An account can be opened for Rs.100 but the total deposit for the year should be a minimum of Rs.500.

  • At a post office or bankAccounts can be opened by visiting a post office or branch of a bank that has been authorised for this purpose. The required forms can be obtained, filled in and submitted along with the required documents (mentioned above). An initial deposit has to be made to open the account. Banks and post offices act as agents for the government under whose purview the PPF scheme falls.
  • OnlineAccounts can also be opened online by visiting a bank’s official website or through third-party financial services providers’ sites that provide such services. Opening accounts online with a bank is primarily subject to the terms and conditions laid down by the bank. By opening an account online, users save time, effort and travel costs. Many banks offer additional facilities such as linking savings accounts, viewing online account statements and online fund transfers.Traditionally, accounts were opened primarily through post offices but with online banking gaining popularity, more investors are opting to open accounts with banks which try to woo customers with value added services such as instant account balances and mobile updates.

I think your all queries about, where you can and how you can open a PPF account in detail if you have any question you can ask me in the comment box or you can simply email me at the Ravanchalmail@gmail.com.

Now you should know the in which bank you can open a PPF account. I will give you the detail of all banks (Public sector and Private Sector) List.

Banks Authorized to Open PPF Accounts in India

PPF accounts can be opened in authorized banks and authorized bank-branches only. Although an account is held at a bank’s branch, it is still a government-run scheme. Fund rules apply irrespective of where the account is held. PPF account transfers can be effected between bank-branches.

A List of Banks 2017-18 (Public And Private Sector Banks) Where PPF Accounts can be Opened

PUBLIC SECTOR BANKS PRIVATE SECTOR BANKS
State Bank of India PPF

State Bank of Travancore PPF

State Bank of Hyderabad PPF

State Bank of Mysore PPF

State Bank of Bikaner and Jaipur PPF

State Bank of Patiala PPF

Allahabad Bank PPF

Bank of Baroda PPF

Bank of India PPF

Bank of Maharashtra PPF

Canara Bank PPF

Central Bank of India PPF

Corporation Bank PPF

Dena Bank PPF

IDBI Bank PPF

Indian Overseas Bank PPF

Oriental Bank of Commerce PPF

Punjab National Bank PPF

Union Bank of India PPF

United Bank of India PPF

Andhra Bank PPF

Vijaya Bank PPF

Punjab and Sind Bank PPF

UCO Bank PPF

ICICI Bank

Axis Bank

 

Public Provident Fund (PPF) Forms

There are various forms pertaining to PPF accounts. They are Forms A to H, each of which are issued for a specific purpose.

  • Form A – To open a Public Provident Fund Account (PPF Account) This is the form issued to those opening a new PPF account. It will require key particulars of the account holder such as name, address, PAN card and signature to be filled in. The amount being deposited will also have to be specified. In case of minors, particulars such as the minor’s name, guardian’s name and relationship with the applicant will be required. If the account is being opened by an agent, the agent’s name will have to be filled in.
  • Form B – To make deposits into / repay loans taken against a PPF account This is used to deposit or pay money into an account. These deposits or pay-ins may be investments, repayments for a loan taken against the account or payment of penalties to reactivate an inactive account. Investments have to be made every year to keep the account active. Loans can be availed from year 3 to year 6, counted from the year of account opening. Amounts can be deposited via cash, cheque, PO, DD or internet banking. This has to be specified in the pay-in slip. In case accounts are opened and deposits made through an agent, the agent’s name and the code has to be entered in the form.
  • Form C – To make partial withdrawals from a PPF account Certain sums of money can be withdrawn from the account from year 7 of opening the account. This form is an application to withdraw such amounts. The form requires the applicant to fill in the account number and the amount to be withdrawn as well as a declaration stating no other amounts were withdrawn during the same financial year.
  • Form D – To request a loan against a PPF account Account holders can utilize the loan facility provided under the scheme from year 3 to year 6 of an active account. Details to be specified are the PPF account number, the amount being borrowed and an undertaking that the amount will be repaid with interest within 3 years as per the rules.
  • Form E – To add a nominee to a PPF account more than one person can be nominated for a single PPF account. The names of such persons, along with their addresses and relation to the account holder has to be specified in the form. In case more than one nominee is stated, the percentage of funds that can be claimed by each nominee will have to also have to be specified. Nominations cannot be made for minors’ PPF accounts.
  • Form F – To make changes to PPF account nomination information This form is to be used to cancel or alter nominees for a particular PPF account. The account holder will have to specify when the nominee being cancelled/replaced/altered was named so. Nominees can be added, removed at any time during the PPF account tenure. The percentage allocated to each nominee can also be altered.
  • Form G – To claim funds in a PPF account by a nominee/legal heir When an account holder dies, those whom he/she stated as nominees or his/her legal heirs, can claim the amount in his/her PPF account. To do so, Form G will have to be filled out with required details such as the name(s) of the nominee(s)/heir(s) of the account holder. The form asks for confirmation from the claimant that the death certificate of the account holder has been enclosed.
  • Form H – To extend the maturity period of a PPF account The standard tenure for a PPF account is 15 years after which the investor can withdraw funds held therein, completely and freely. However, if a PPF account holder wishes to extend the term of the account beyond 15 years, he/she can do so for a further 5 years by submitting this form. The account number and date of account opening will have to be specified.

Interest Rates for PPF Accounts

The Public Provident Fund Scheme is a fixed-income, debt investment offered by the government. It is the central government who sets and announces the latest PPF interest rates. The rate currently stands at 7.9% p.a. for the year 2017-2018

The table below represents PPF interest rates for the last 16 years.

FINANCIAL YEAR INTEREST RATE IN %
2017-2018

2016-2017

2015-2016

2014-2015

2013-2014

2012-2013

2011-2012

2010-2011

2009-2010

2008-2009

2007-2008

2006-2007

2005-2006

2004-2005

2003-2004

2002-2003

2001-2002

2000-2001

7.9%

8.1%

8.7%

8.7%

8.7%

8.8%

8.6%

8.0%

8.0%

8.0%

8.0%

8.0%

8.0%

8.0%

8.0%

9.0%

9.5%

11%

Interest is compounded annually and credited at the end of every financial year. Interest is calculated as per the rate announced for a particular financial year i.e. the rate does not remain fixed for the entire tenure. E.g. Considering the table above, if the account was opened in the year 2011 – 2012, interest would have been calculated @ 8.6% p.a. for the first year, @ 8.8% p.a. for the second year (2012 – 2013), @ 8.7% p..a for the third, fourth and fifth year (2013 – 2014, 2014 – 2015, 2015 – 2016).

Amounts deposited into the account before the 5th of a particular month are considered for calculations. Thus, deposits should ideally be made from the 1st to the 5th of any month in order to maximise returns. E.g. if an account shows a balance of Rs.1,00,000 on Sept. 1st and a deposit of Rs.50,000 is made on Sept. 7th, interest will be calculated on Rs.1,00,000 for the month of September, not Rs.1,50,000.

Interest earned on amounts held in PPF accounts are tax-free, which acts as a major draw for investors looking to maximise returns. The interest rate has, over the past decade, been within the 8% p.a. mark. With no major fluctuations in rates, it is a fairly stable option for risk-averse investors.

Compounding serves to make PPF rates of interest more attractive. The earlier people invest and stay invested in this scheme, the more they stand to earn at maturity. A rise in interest rates, coupled with the raising of the deposit ceiling over the years, has enhanced returns to depositors.

Minimum And Maximum PPF Deposits

The minimum deposit required to be made every year is Rs.500. The maximum that a person can deposit in a year is currently Rs.1.5 lakhs.

Failure to make an annual deposit, in any year, will lead to inactivation of the account. Deposits can be made in a lump sum i.e. the entire amount to be invested can be paid into the account at one time, or it can be spread over 12 installments in a year or spread over up to 2 installments a month.

(The government can, if it sees fit, change PPF deposit limits. Even as it increased the ceiling from Rs.1 lakh to Rs.1.5 lakhs in Aug. 2014, provisions were put in place, for those who wished, to invest an additional Rs.50,000 to meet the new investment limit by the end of Financial Year 15).

Defaults, Inactivation, and Reactivation of PPF Accounts

Money has to be deposited every year to keep a PPF account active. At the very least, the minimum requirement of Rs.500 should be met. If this isn’t done for any financial year, during the 15-account’s year tenure, the account is deemed inactive.

To reactivate the account, an account holder has to pay a penalty of Rs.50. The penalty applies for each year the account has been inactive. For e.g. if an account holder failed to make the minimum investment in year 3, year 4 and year 5 , the account is deemed inactive in year 3. It retains its inactive status for year 4 and 5 and it would have remained inactive except he decides to reactivate it in year 6. To revive his inactive PPF account, he/she will have to pay Rs.50 for the 3 inactive years i.e. Rs.150. In addition, he/she will have to deposit an amount equal, at least, to the minimum investment for each year i.e. Rs.500 * 3 = Rs.1,500 and Rs.500 for year 6 i.e. Rs.1,500 + Rs.500 = Rs.2,000.

Loan and withdrawal facilities cannot be availed while a PPF account is inactive. Also, interest will not be earned during the year(s) the account is inactive.

Withdrawals or Closure of a PPF Account

PPF accounts cannot be closed before maturity i.e. before the end of year 15. Even if an account becomes inactive, funds accrued therein cannot be withdrawn until the end of the 15 years. On completing 15 years, the entire amount held in the account, along with the interest accrued, can be withdrawn freely and the account can be closed.

However, if account holders are in need of funds, the scheme permits partial withdrawals from year 7 i.e. on completing 6 years. The amount that can be withdrawn is capped at the lower of

  • 50% of the total balance at the end of the fourth year, counting back from the year of withdrawal OR
  • 50% of the total balance at the end of the year before the year of withdrawal Withdrawals can be made only once in a financial year.

Extension or Renewal of PPF Accounts (Maturity Options)

Although accounts mature at the end of the 15th financial year from the year the account is opened, account holders can choose to extend the tenure. Tenures can be extended in 5-year blocks with or without making further investments.

  • If no fresh investments are made after maturity, the account can continue earning interest on the amount accrued in the account until the end of year 15. Also, in this case, funds can be withdrawn freely once every financial year.
  • If fresh investments are made after maturity, the new deposits will be added to the balance held at the end of year 15 and interest will be calculated on the entire amount. However, in this case, withdrawals will be restricted to a maximum of 60% of the amount held in the account at the start of each 5-year period of extension.

Tax Advantages of Investing in the PPF Scheme

Tax benefits available on these accounts make these investment options very attractive, especially for those using this scheme to build a retirement corpus.

  • PPF deposits fall under the EEE (Exempt, Exempt, Exempt) tax category.
    • Deposits made under this scheme can be claimed as deductions under section 80C.
    • Interest earned on these deposits are not taxable.
    • Amounts withdrawn from the account are exempt from wealth tax.
  • Amounts deposited in a spouse’s or child’s PPF account also qualify for tax breaks.

 

So this is all about the PPF account if you have still any question you can ask me in the comment box or you can simply Email me at Ravanchalmail@gmail.com

This is the video tutorial of PPF(Public Provident fund Account)

 


All About the EPF Account  (Employee Provident Fund)

In this section, we will discuss all the EPF(Employee Provident Fund) from the opening an account till benefit, Interest and tax saving tips and everything about the Employee Provident Fund Account

What is EPF(Employee’s Provident Fund)? 

Employee’s Provident Fund (EPF) is a retirement benefits scheme that’s available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO) and any company with over 20 employees is required by law to register with the EPFO.

It’s a savings platform that helps employees save a fraction of their salary every month that can be used in the event that you are rendered unable to work, or upon retirement.

Provident Fund Deduction from Salary:

When you start working, you and your employer both contribute 12% of your basic salary (plus dearness allowances, if any) into your EPF account. The entire 12% of your contribution goes into your EPF account along with 3.67% (out of 12%) from your employer, while the balance 8.33% from your employer’s side is diverted to your EPS (Employee’s Pension Scheme). It’s important to note that if your basic pay is above Rs. 6,500 per month, your employer can only contribute 8.33% of 6,500 (i.e. Rs. 541) to your EPS and the balance goes into your EPF account.

These funds are pooled together from many employees like yourself and invested by a trust. This generates an interest of 8% – 12%, which is decided by the government and the central board of trustees. The annual interest rate is available on the official EPF India website and is currently at 8.75%.

EPF is active every time you receive your pay. If you’re changing jobs, it’s important to also update your EPF information with your new company, giving them your EPF number so that they can continue the contribution.

Interest on EPF:

The compound interest that’s decided upon by the government and central board of trustees is paid on the amount standing to the credit of the employee as on the 1st of April every year.

While your contributions are made monthly, the interest is calculated yearly. At the start of every year, you have an opening balance (which is the amount accumulated till that point). Your opening balance for the next year would be opening balance + total monthly contributions + interest on the (old opening balance + contribution).

It’s important to note that interest will only accumulate on your EPF balance and not on the funds that your EPS balance, as EPS is a pension scheme.

Tax Benefits:

The employer contribution to your EPF is tax-free, and your contribution is tax-deductible under Section 80C of the Income Tax Act. The money you invest in EPF, the interest earned and the money you eventually withdraw after the mandatory specified period (5 years) are exempt from Income Tax.

What if you don’t want to pay PF?

Well, chances are that you’ve already started your professional career. The only time you can opt out of the EPF program is at the start of your career when you tell your first boss that you don’t want to be a part of it and fill out Form 11 . If you’ve contributed towards EPF even once and have an account created in your name, you cannot opt out of this scheme.

Don’t worry though, as even though opting out of the EPF scheme increases your in-hand salary, it’s the easiest way to build a retirement fund. Having a little less spending power now could mean financial stability later. With the pooling of funds from you and your employer and the relatively high interest rates, you could be on your way to building a strong corpus of funds, without even realising it.

So how do you find out how much you’ve got saved?

All your EPF details are available on the EPF India website. With the introduction of the UAN (Universal Account Number), you can now access all EPFO facilities online. You can also check your EPF details with your EPF account number.

Money gets credited for me into an account. When can I withdraw it?

Withdrawals are generally not allowed from your EPF account, unless you’ve given up working or want to be self-employed, etc. As per the rules, you can withdraw money from this account only if you have no job at the time you apply for a withdrawal and a waiting period of 2 months has passed. You’ll need to fill a declaration with a reason for the same. To withdraw your EPF balance, you’ll need to fill in Form 19 , sign it and have it attested by your former employer (or your bank manager/gazetted officer in case your former employer is uncooperative). You will need to submit this form along with a letter stating that you are relieved from your services to the company and a cancelled cheque from your savings bank account to the EPFO of your jurisdiction.

There are ways that you can navigate your way out of the mandatory 2 month waiting period, if you want your EPF amount immediately. Employees planning to settle abroad, or those who have landed jobs in a foreign country are eligible to receive PF withdrawal immediately after registration.You’ll need to submit proofs like a copy of your VISA or employment letter, as the case may be.

A lesser known waiver to the waiting period is that a female employee can withdraw her PF money if she is leaving service for the purpose of getting married. The proof for submission here can be your marriage certificate, or even your wedding invitation card. You can withdraw a portion of your EPF savings for the purpose of:

  • Marriage or education of yourself, your siblings, or children.
  • Addressing emergency medical expenses for yourself, spouse, children, or dependent parents.
  • Repaying housing loans for a house owned by you, a spouse, or jointly by both of you. You can do this only after 10 years of service and contribution to EPF.
  • Paying the costs of alterations/repairs to your existing home. You’ll need to have been in service and contributing for 5 years for alterations and 10 for repairs.
  • If you’ve completed 7 years of service, you can withdraw 50% of your EPF contribution up to 3 times in your working life.

So what’s the big picture?

It’s recommended not to touch your EPF unless you’re in dire straits and have no other avenue through which you can acquire the funds you need in an emergency. EPF offers you an incredibly risk-free, secure and protected investment for your retirement. You can also opt to contribute more than the minimum

So how do you find out how much I’ve got saved?

All your EPF details are available on the EPF India website. With the introduction of the UAN (Universal Account Number), you can now access all EPFO facilities online. You can also check your EPF details with your EPF account number.

Money gets credited for me into an account. When can you withdraw it?

Withdrawals are generally not allowed from your EPF account, unless you’ve given up working or want to be self-employed, etc. As per the rules, you can withdraw money from this account only if you have no job at the time you apply for a withdrawal and a waiting period of 2 months has passed. You’ll need to fill a declaration with a reason for the same. To withdraw your EPF balance, you’ll need to fill in Form 19 , sign it and have it attested by your former employer (or your bank manager/gazetted officer in case your former employer is uncooperative). You will need to submit this form along with a letter stating that you are relieved from your services to the company and a cancelled cheque from your savings bank account to the EPFO of your jurisdiction.

There are ways that you can navigate your way out of the mandatory 2 month waiting period, if you want your EPF amount immediately. Employees planning to settle abroad, or those who have landed jobs in a foreign country are eligible to receive PF withdrawal immediately after registration.You’ll need to submit proofs like a copy of your VISA or employment letter, as the case may be.

A lesser known waiver to the waiting period is that a female employee can withdraw her PF money if she is leaving service for the purpose of getting married. The proof for submission here can be your marriage certificate, or even your wedding invitation card. You can withdraw a portion of your EPF savings for the purpose of:

  • Marriage or education of yourself, your siblings, or children.
  • Addressing emergency medical expenses for yourself, spouse, children, or dependant parents.
  • Repaying housing loans for a house owned by you, a spouse, or jointly by both of you. You can do this only after 10 years of service and contribution to EPF.
  • Paying the costs of alterations/repairs to your existing home. You’ll need to have been in service and contributing for 5 years for alterations and 10 for repairs.
  • If you’ve completed 7 years of service, you can withdraw 50% of your EPF contribution up to 3 times in your working life.

So what’s the big picture?

It’s recommended not to touch your EPF unless you’re in dire straits and have no other avenue through which you can acquire the funds you need in an emergency. EPF offers you an incredibly risk-free, secure and protected investment for your retirement. You can also opt to contribute more than the minimum 12% towards your EPF , but this is voluntary and the extra contribution does not need to be matched by your employer. While this effectively reduces your in-hand salary at the end of the month, it will be useful in the future.

but this is voluntary and the extra contribution does not need to be matched by your employer. While this effectively reduces your in-hand salary at the end of the month, it will be useful in the future.

UAN Number

The UAN is a 12-digit unique number that has been given to every PF member. Before the introduction of the UAN, employees were inconvenienced by the fact that they had to keep shifting their accounts when they shift organisations, but now, the UAN controls all PF accounts of an employee and it can be functioned as one account. The UAN has made almost all processes of the EPF easier and convenient. Some of the benefits are:

  • All PF accounts of an employee are unified and can be treated as one account under the UAN.
  • Transfer from one PF account to another PF account can be done using the UAN.
  • Using the UAN, employees can now make withdrawals from their PF accounts. For those employees who have linked their Aadhaar card to their UAN, they do not need the attestation of their employers to make a withdrawal.
  • Using the UAN, employees can track their accounts, check the contributions, balance of their account and can manage their PF accounts all by themselves, without the hassle of their employer.

How to check EPF balance

Back in the day, EPF members could check their balance only once a year, to verify their contributions withdrawals and their outstanding balance. Now, with the introduction of the EPFO’s member portal and the UAN, checking one’s EPF balance is just a few clicks away. To check one’s EPF balance on the EPFO’s member portal, follow the steps:

  • Visit the EPFO’s member portal – http://www.epfindia.com/site_en/KYEPFB.php
  • Next, click on ‘Know your balance’ at the bottom of the screen
  • Then, select the location of your regional EPF office
  • Enter your PF account number and your mobile number
  • Once you have done that, click on ‘submit’. In a few seconds you will receive a text message of your EPF balance

To check balance via UAN:

  • Visit the UAN webpage – http://uanmembers.epfoservices.in/
  • Next, enter your UAN and mobile number
  • Next, select your EPF state and city
  • Enter the captcha code and click on ‘submit’.
  • You will receive an SMS of your EPF balance

An employee can even check his/her balance via SMS, missed call or on the EPF mobile app.

EPF E-Sewat

In April 2012, the EPFO launched the E-Sewa which is basically an online receipt of the Electronic Challan cum Return (ECR). Employers can enroll themselves for this facility just by registering their establishment code, their unique ID and choosing a secured password on the portal. The introduction has made the whole process of returns paperless, as now employers can view the electronic challan on the portal, view the annual account slips and can even print it if required. Once they have made a return, an SMS will alert them of the same.

EPF Helpline

For EPF members who need help navigating through the processes of the EPF or facing difficulties, the EPFO has set up a dedicated helpline to come to the aid of such members. The toll free helpline of the EPF is 1800118005.

Benefits of linking your Aadhaar card to your UAN

Since the Aadhaar card has now become the most valid source of identification in the country, linking one’s Aadhaar card to an employee’s UAN has enabled employees to make withdrawals, transfers and so on without the attestation of their employers. The Aadhaar card details linked to the UAN functions as a valid verification of the EPF member as well, enabling the member to perform various tasks related to the EPF seamlessly.

 

 

 

 

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Hello Everyone, My name is Ravi Kant Yadav the man behind the Ravanchal, I am pursuing Bachelor in Technology. I am from Allahabad, Uttar Pradesh, India. My Purpose to starting the Ravanchal website just provides the Perspective and Analysis News from all sources by my own Analysis.
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One thought on “What is PF and PPF account? Diffrence, Benefit and how to open a PF and PPF account?

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