EPFO: Do you know that not only in old age, but PF account holders get many more benefits from this account. So let’s know everything about them …
New Delhi. The Employees Provident Fund Organization (EPFO) provides PF facility to all employees. For this, a small part of the employee’s salary is deducted to be credited to the PF account. It is a way of securing the future of an employee after retirement. After retirement, this accumulated capital is used by that employee. But do you know that not only in old age, but PF account holders get many more benefits from this account. So let’s know everything about them … 1. Free insurance facility is available
As soon as an employee’s PF account is opened, then he / she is also defaulted by default. Employees have insurance up to Rs 6 lakh under Employee Deposit Linked Insurance (EDLI). During the service period of an active member of EPFO, up to Rs 6 lakh is paid to his nominee or legal heir on death. These benefits are provided by the companies and the central government to their employees.
Why provident fund is so important?
Why provident fund is so important?
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2. Exemption in tax;
PF is the best option even if you want tax exemption. However, you should also know that there is no such facility in the new tax system whereas tax is exempted in the old tax system. EPF account holders can save up to 12 percent on the tax on their salary under Section 80C of Income Tax.
3. After retirement,
8.33% of the contribution deposited in the pension PF account goes to the employee pension scheme. Which is received as pension after retirement. Pension is the biggest support of a person’s old age. For which the government also runs many schemes.
4. Interest on inactive account Interest is also paid on the inactive PF account of the employees. As per the changes made in the law in 2016, now PF account holders are also paid interest on the amount deposited in their PF account lying dormant for more than three years. Earlier, there was no provision to give interest on PF account lying dormant for three years.
5. Money can be withdrawn at the time of need. One of the best features of PF Fund is that some money from it at the time of need. Can also be removed. With this, you will be able to avoid the possibilities of loan.
