Question: Which Is Better EPF Or PPF?

Can I convert EPF to PPF?

you can’t transfer your PF account to PPF account because both are different you can transfer you account to your old PF account to new PF account 🙂 through www.epfindia.com/ While changing jobs and joining a new employer, an employee has an option to close the old PF account and open a fresh one..

Which one is better PF or PPF?

EPF is slightly more beneficial than PPF because of the following reasons: Employer contribution: Employer contributes to fund in case of EPF, whereas no such contribution occurs in case of PPF.

Is PPF still a good investment option?

Tax-free interest income: PPF offer exempt-exempt-exempt (EEE) tax benefit which means that interest earned on the Public Provident Fund is tax-free. … In fact, your post-tax yields will fall dramatically in other instruments, which makes the PPF a good investment choice compared to other options in the same category.

Can we save money in EPF?

Top-Up EPF Savings For those who are looking for ways to contribute to the retirement wellbeing of your loved ones, you can do so through our Top-Up Savings facility. With this facility, the Topper may voluntarily make additional contributions to your family members (Toppee) EPF account.

Can we increase PPF amount?

1. PPF contribution rules. While the minimum and the maximum amount that can be deposited in PPF remains the same, the minimum amount required to open PPF account has changed along with the number of times one can deposit contributions on the PPF account.

Can husband and wife both have PPF account?

Ankur Choudhary, Co-Founder and CIO, Goalwise replies: “Yes, your wife can have a PPF account in her name and you can invest Rs 1.5 lakh on her behalf. Under the income tax laws, income from money given to a spouse is clubbed with the income of the giver.

Can I continue PPF after 15 years?

Close the account and withdraw entire proceeds: A PPF account can be closed only on the expiry of 15 years from the end of the year in which the initial subscription was made into the account. … You have the option of extending your PPF account after it matures. You can extend it indefinitely in a block of five years.

Can a person have 2 PPF accounts?

“PPF rules are very clear that one can’t open more than one account if someone still opens a second account, he or she will not be eligible for any interest on invested amount,” said Rajan Pathak, Mumbai-based independent financial advisor. “The second account will have to be closed down.

What if PPF is not paid?

Penalty for not depositing minimum amount In a PPF, if you do not invest a minimum amount of Rs 500 in a single financial year, your account will become inactive. You can revive the account by paying a penalty of Rs 50 (for every financial year your account has been inactive) and minimum deposit amount of Rs 500.

What happens if I invest more than 1.5 lakhs in PPF?

The PPF deposit up to 1.5 lakh is liable to the exemption and the amount to be received on maturity is also tax-free. Hence, PPF scheme undoubtedly is one of the most tax efficient and popular money-saving schemes in India.

Which bank is better for PPF?

A PPF account can be opened in only designated bank branches of SBI and its subsidiaries, ICICI Bank, Axis Bank. Other banks where you can open a PPF account include: HDFC Bank, Central Bank of India, Bank of India (BOI), IDBI, Central Bank of India, Punjab National Bank, Indian Overseas Bank, and few others.

Can I have both EPF and PPF account?

Can I invest ₹1.5 Lakhs in EPF and ₹1.5 Lakhs in PPF in a single financial year? Yes you can. But you can claim a tax deduction of only ₹1.5 Lakh per financial year under Section 80C for all your eligible investments put together.

What is the right time to invest in PPF?

The best time to invest is between the 1st and the 5th of any month, preferably April each year. Interest is calculated for the calendar month on the lowest balance at credit of your account, between the close of the 5th day and the end of the month, and is credited at the end of every year.

How much I will get in PPF after 15 years?

1,00,000 towards your PPF investment for 15 years at 7.1%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 .

Is PPF a good investment?

Tax Benefit Investment in PPF is tax free up to a limit of Rs 1,50,000 under Section 80C of the Income Tax Act, 1961, for each financial year. The interest on the PPF is also tax exempt but must be declared in the income tax return filed each year. The PPF corpus amount upon maturity is also exempt from tax.

Can I withdraw PPF amount?

As a rule, one can fully withdraw the PPF account balance only upon maturity i.e. after the completion of 15 years. Upon completion of 15 years, the entire amount standing to the credit of an account holder in the PPF account along with the accrued interest can be withdrawn freely and the account can be closed.

Can I take out my EPF money?

You have the option to withdraw EPF savings at age 50 or 55 (either partially or fully), or at age 60, when you can then withdraw any amount at any time. … You can also withdraw EPF for monthly home instalments.

Is there any age limit for PPF account?

Ankur Choudhary, Co-founder& CIO, Goalwise.com replies: There is no upper age limit for opening a PPF account. The lock-in, however, remains at 15 years irrespective of the age at which you open the account. On maturity, the account can be extended by blocks of 5 years any number of times.