You shouldn’t be basing your savings decision on the notion that your sons and daughters will take care of you in your non-earning decades
Increasing take home salary by lowering employees’ mandatory contribution to PF is like enjoying today and leaving little for the rainy days
Government officials familiar with the matter said the labour ministry is of the view that EPFO has sufficient surplus of over Rs 3,150 crore, mainly earned from investments in exchange traded funds (ETFs).
Allows accounts linked with Aadhaar to make withdrawal on self-attestation basis.
At present, the subscribers of the Employees Provident Fund Organisation (EPFO) are required to file transfer of EPF claims on changing jobs despite having universal account number (UAN). The EPFO gets about eight lakh EPF transfer claims every year.
Investments in employees provident fund earn a higher rate of interest than bank fixed deposits and also taxfree interest.
Those of you in your 20s might feel its too early while those in 40s might feel it’s already late. But to be honest, both aren’t quite right. Here is what you should do if you have no retirement savings.
Provident Fund accumulation is long-term saving intended to act as a corpus for retirement.
One should avoid VPF in a falling interest rate scenario and instead deploy the money in mutual funds, preferably through a SIP.
Despite the falling rates, EPF still holds saving advantage over other retirement savings fund.
Besides, it also proposed to extend the facility of payment of 12 per cent employers' contribution by government towards social security schemes run by Employees Provident Fund Organisation (EPFO) for new employees for first three years of their employment to all sectors.
Labour Minister Bandaru Dattatreya said there are around 43 per cent of the total employees in the country are in the unorganised sector and 4.7 crore of them were in the construction sector.
The two instruments serve different purposes and are typically not an “either-or” choice. EPF gives guaranteed returns while NPS has market-linked schemes.
The process of online submission of claims for availing PF withdrawal benefits (Form-19), Pension (Form 10C) and PF Part Withdrawals (Form 31) does away with the employer’s intervention in the process.
All employees need to have only one UAN throughout their working life irrespective of the number of companies they change.
The subscribers of the Employees Provident Fund Organisation (EPFO), will now be able to withdraw up to 90 per cent of their accumulations in their PF account, for purchase of homes. The EPFO has R
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.
I invest like a girl because there is a lot which is right about investing that way
"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.