Benefits of Employee Provident Fund
The employee provident fund is a popular investment scheme for people working in the private sector. This scheme has many other added benefits apart from tax savings. Read through the benefits of the Employee Provident Fund Scheme Tax-free – The funds in your EPF account are tax-free. If you wish to withdraw your EPF money at the time of maturity, the amount is free of tax. However, you will be taxable if you withdraw the amount before 5 years of continuous service. Long-term investment – This provides financial security. The scheme encourages its members to refrain from withdrawing their funds before maturity. Pension Scheme – 8.33% out of the 12% contribution of the employer is towards the pension scheme. Hence a member can also benefit from the pension plan available. Easily accessible – With the linking of Aadhar to the UAN, a member can transfer his/her PF funds during the transfer of jobs automatically by submitting Form 13. Insurance benefits – If there is an absenc...