Financial Planners say withdrawing PF to finance life’s goals should be a well-considered move and the last among all financing options
The government believes the methodology may not have truly reflected many reforms, particularly in tax rates and administration, hammering down the overall rankings and creating an impression that India continues to remains a dodgy place to do business in.
The inclusion of the agenda item of the Central Board of Trustees’ (CBT) to make PF contributions voluntary for the garment and made-up sectors has raised doubts on the government’s long-term intent on provident fund structure.
Central trade unions which have been opposing equity investment of PF money say that support from an overwhelming majority of non-trade union CBT members would result in the proposal being accepted.
The government will amend EPF scheme to enable withdrawal of up to 90 percent of their fund to pay for home purchases.
Total service in the present establishment as well as previous establishments is counted for deducting tax at source and therefore, it is advisable to merge all PF accounts, EPFO has pointed out.
Financial planners and experts seem to be in agreement that Equity Linked Savings Schemes (ELSS) is the best investment avenue under Section 80C of the Income Tax Act since it outscores other options in terms of liquidity and returns.
Employees' voluntary PF (VPF) contribution can be taken right up to 100 per cent of basic pay. However, the employer is not required to match the additional contribution made by the employee.
Replying to a Calling Attention Motion of Ahmed Patel (Congress), Labour and Employment Minister Bandaru Dattatreya asserted that his "paramount interest will be safeguarding of the workers' interest." Patel's motion was on the alleged diversion of money from Employees Provident Fund (EPF) to stock market.
For purchase of a house or plot or for construction of a house Under the Provident Fund scheme, an employee can withdraw money from his provident fund, after completion of contribution of five years, R
Minister of State for Labour and Employment Bandaru Dattatreya told Lok Sabha that 118.66 lakh claims were settled by the Employees' Provident Fund Organisation (EPFO) in 2015-16, adding that 98 percent of them were settled within 20 days.
Raising the issue during Zero Hour, CPI(M) member Tapan Kumar Sen slammed the "unilateral, undemocratic" action by the Ministry, saying it had completely ignored the unanimous decision of the tripatite body of the EPFO, which is headed by Union Labour Minister himself.
Government has set up a welfare fund which will utilise unclaimed money, estimated to be in excess of Rs 9,000 crore, lying in PPF, employees provident fund and small savings schemes to provide healthcare facilities and pension to senior citizens.
Replying to starred question, Minister of State for Labour and Employment Bandaru Dattatreya said at present, these provisions are applicable only to establishments which employ 20 or more people.
The Finance Minister is expected to speak on EPF tax proposal in the Lok Sabha after 12 noon. Modi had reportedly asked Jaitley to reconsider the Budgetary proposal under which a part of the EPF withdrawal will be taxed, according to highly placed sources.
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According to the new definition of the wages, as proposed in a draft bill, for the purpose of computing provident fund contributions by employers as well as employees, the wages would include basic pay and allowances.
With respect to ESI, he said the employee would have the option of choosing either ESI or a Health Insurance product, recognised by the Insurance Regulatory Development Authority (IRDA). "We intend to bring amending legislation in this regard, after stakeholder consultation," Jaitley added.
One should not opt out of employees' provident fund (EPF) unless faced by cash constraints, recommends Harsh Roongta of apnapaisa.com.
In an interview to CNBC-TV18, personal finance expert, Sumeet Vaid of Ffreedom Financial Planners discussed about various aspects of National Pension System and Public Provident Fund.
A recent circular about the manner in which the contribution to the Employees Provident Fund will be calculated will have far reaching impact on employees in the days to come.
All salaried individuals working in organizations registered under the Employees Provident Fund Organization, contribute monthly to their Employees' Provident Fund (EPF). But it has been observed that not all individuals know the features of the EPF. Read this space to know the 3 main things you need to keep in mind about the EPF.
Investments in an Equity-Linked Savings Scheme (ELSS) of a mutual fund have yielded higher returns compared to other instruments like PPF and NSC in the last few years, a report by Crisil has said.