Funds in EPFO can be used to buy units in non-governmental as well as governmental housing projects.
"The Employees' Provident Fund Organisation (EPFO) is developing online claims settlement process by receiving application online," Labour Minister Bandaru Dattatreya said in a written reply to the Lok Sabha.
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 package will be finalised in about a week's time. It will be sent for inter-ministerial consultation thereafter, and finally to the Cabinet for its approval," a senior government official told Moneycontrol.
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.
Investment and personal finance advisors say that both the schemes have their own importance and a salaried individual should ideally split retirement savings between the two competing instruments, preferably in equal proportions.
Taking advantage of tax deductions for investment under section 80C of the Income Tax Act must start with a list of investments already made to avoid unnecessary overinvesting for tax deduction.
So far, furnishing the Aadhaar card has been made mandatory by the government for nearly 34-35 central schemes.
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.
"The Labour Ministry and the Finance Ministry (view) is the same. There is no difference on 8.65 percent rate of interest on EPF. It is in the process and I will pursue it personally," Dattatreya told PTI.
Experts feel NPS continues to be a good retiral product for the salaried segment since it is market-linked and professionally managed.
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.
Taxpayers‘ habit of last minute rush to save tax is often cashed in by the financial instrument providers and advisors to meet their sales target instead of identifying and matching the investor financial needs.
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Government had enough room to cut the rates further, given the sharp deterioration in rates. But it didn‘t. Even after the reduction to 8.65 percent, provide fund savers still have the highest interest rates.
As per projections, while 8.65 percent will leave the EPFO with a slight surplus for the year, an 8.8 percent rate of interest would result in a deficit of around Rs 200 crore, said sources.
Income tax laws mandate a minimum holding period, before an owner sells his/her residential house, to avail of tax benefits. Let us analyse the various provisions, under the Income Tax Act, to understand the R
"The Employees' Provident Fund Organisation (EPFO) will soon launch a host of Aadhar-linked services like PF withdrawals and pension fixation for its subscribers to facilitate such faster transactions for their benefit," EPFO Central Provident Fund Commissioner V P Joy said at a conference.
Categorizing goals as per the time frame gives you clarity on the type of investments that you need to make for each of your goals and allocation of assets becomes clear.
Section 80C consists of a list of investment options plus some areas of expenses which if the individual has completed during the year will enable them to get a deduction
The Finance Ministry has made a statement last year allowing one time change from EPF to NPS. But the modalities are still to be worked out, Pension Fund Regulatory and Development Authority of India (PFRDA) Chairman Hemant G Contractor told PTI.
Retirement can be a challenge for some, if they have not saved enough for their golden years.
The Employees Provident Fund Organization's (EPFO) board will be meeting on Friday to discuss various issues including plans to invest more into the equity market, say sources.