PF Account: There is also a provision for getting a lifetime pension under EPS’95. If you invest in it, then you get tax exemption under Section 80C of Income Tax.
PF Account: Provident Fund (Provident Fund) is a great option for financial security or support in future. In a way, provident fund is a better investment option for retirement. Those investing in EPF (Employee Provident Fund) get many benefits. The more investment in it, the better will be the interest. But, people often withdraw PF money on changing jobs or break the investment if needed. By doing this, the benefits keep decreasing.
You get these benefits
There are many benefits of investing in a provident fund. You get higher interest on provident fund savings. Apart from this, there is also a provision for getting life pension under EPS’95. If you invest in it, then you get tax exemption under Section 80C of Income Tax. Also, for special circumstances like epidemic or unemployment, the facility of PF advance is also available. If the provident fund member dies, the nominee is paid a minimum amount.
Benefit of pension too
If you have not withdrawn money from PF account before retirement, then pension is also benefited. Under the EPS (Employee Pension Scheme) of EPFO, you will get a few rupees as a pension every month. The rule is that if a PF account runs without any withdrawal for 10 years, then that member’s pension starts. After 58 years, pension starts getting from the pension fund.
How long will you get the benefit of interest
EPF accounts are in two categories. One, active account, which invests on a regular basis. At the same time, there is another passive account, in which there has been no new investment for 3 years. Active accounts get interest every year continuously. At the same time, interest has started accruing on inactive accounts from the year 2016 onwards. Earlier, in 2011, interest on idle accounts stopped.
