Increasing EPF Contribution: Things To Know

When it comes to safety and return on investment, EPF or Employee Provident Fund hold an important role. EPF gives a better interest rate than FD or government bond. EPF is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO). Becuase of deducting before handing you out the salary, the EPF scheme keeps the discipline of investing. EPF investments provide tax benefit under section 80 C.

If you think EPF contribution of 12% insufficient? Then you can contribute more than that towards your EPF account. The EPF has the provision of enhanced contribution.

Contribution

Depending on the employee's convenience, he or she can increase the contribution to 100%. Note that it is not required by the employer to increase the contribution, it remains fixed. The employer is not bound to match your contribution.

Tax benefit

The employer contribution to your EPF is tax-free. Your contribution to EPF account is tax-deductible under Section 80C of the Income Tax Act. You will get this tax benefit under section 80C on the extra contribution as well. The money invested and interest earned, money withdrawn after the specified period, etc. are exempt from income tax. How To Withdraw EPF And EPS Online?

Savings

Your investments will be accumulated till your retirement death or resignation. The EPF account holder will also earn interest on the accumulated amount. The EPF holder will also be eligible for the bonus.

KWSP 17A (AHL)

If only the EPF account holder opts to contribute at a rate exceeding the statutory rate, the EPF account holder may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17A (AHL). How To Check EPF Balance Through Mobile SMS?

KWSP 17 (MAJ)

If only the employer opts to contribute at a rate exceeding the statutory rate, then the employer may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17 (MAJ).

Forms

If both the EPF account holder and employer opt to contribute at a rate exceeding the statutory rate, both may submit a notice of election to contribute at a rate exceeding the statutory rate using Form KWSP 17A (AHL) and Form KWSP 17 (MAJ) respectively. EPFO Made PF Withdrawal Easy: Here Are Facts To Know

 

 

Goodreturns.in