PF Benefits: What is the right time to withdraw PF? Know the benefits associated with Provident Fund account
New Delhi | Jagran Business Desk: If you come from a salaried class then you must be aware that a fixed amount is deposited from your salary every month in PF Fund. The Employees Provident Fund Organization (EPFO) manages this fund. Well, 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 Tax and investment experts always insist that deposits in PF funds should be withdrawn only in a very unavoidable situation.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 the PF account and PF fund, which are rarely seen in other funds.
Special benefits related to PF:
You get a 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.
In this scheme, you get the benefit of tax exemption under Section 80 (C) of the Income Tax Act. Also, 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 the coronavirus epidemic. The scheme provides for a lifetime pension under the Pension Scheme, 1995 (EPS).
If a member of the EPFO is regularly contributing to the fund, the family member 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. The amount gets deposited in PF account in this ratio.
You should aware that employers and employees have to deposit an amount equal to 12 percent of the basic salary and 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.
Posted By: Srishti Goel