Big news for employees! EPF money will now be tax free, check details here
Zee News
Currently, 8.50 percent interest is being paid on EPF investments.
New Delhi: For retirement, people invest in a variety of ways, but there is no better option than Provident Fund. EPF investors reap a slew of advantages. The first benefit is that investments up to Rs 1.5 lakh are tax deductible under section 80C of the Income Tax Act. Also, there is a lot of curiosity.
Currently, 8.50 percent interest is being paid on EPF investments. There's also the benefit of interest compounding. To put it another way, the bigger the investment, the fatter the interest. People, on the other hand, frequently withdraw PF funds after moving employment or breaking the investment when necessary. The advantages of doing so are diminished.
If you never withdraw PF money while working, you would receive a lot of advantages when you retire, according to the EPFO rule. To begin, a substantial sum will be saved for retirement. Continuous compounding interest will be available to you. At the same time, the money you'll get when you retire will be tax-free. It should be remembered, however, that no withdrawals were made prior to retirement.