Table of Contents
What are different kinds of PF?
Employees’ provident fund is classified into 4 categories: Statutory Provident Fund, Recognized Provident Fund, Unrecognized Provident Fund and Public Provident Fund.
What is the difference between statutory PF and Recognised PF?
Statutory Provident Fund/General Provident Fund – This is set up under the Act of the Parliament i.e. Provident Funds Act, 1925. Recognized Provident Fund – This fund is one which is recognized by the Commissioner of Income-tax according to the rules and provisions contained in the Income-tax Act.
What is the difference between the EPF and the GPF?
The rate of the EPF is 8.55\% while the rates of the GPF and the PPF are both 8\%. The deduction of taxes according to the section 80C is accessible for the GPF, the EPF and the PPF.
Is investing in PPF and GPF a good idea?
The investment in these provident funds (GPF, EPF and PPF) is a comparatively low risk due to their statutory or government backing. Out of these three funds, the government directly pays interest on PPF and GPF. In the case of the EPF, the interest rate depends on the returns made by the EPF.
What is the rate of interest on PPF and EPF?
The current rate of interest on PPF is 8 per cent and it is revised quarterly by the government. EPF: This is a savings scheme for working people in the organised and unorganised sectors. Both the employee and the employer contribute to the EPF account. The money invested in the EPF account is basically cut from the salary of the account holder.
What is the difference between General Provident Fund and PPF?
As opposed to General Provident Fund, PPF serves as a savings scheme for anyone willing to lock-in their contributions for a prolonged period. However, similar to GPF, the interest rate on Public Provident Fund is revised every quarter by the Government of India.