What does EPF mean in NON-PROFIT ORGANIZATIONS
Employees' Provident Fund (EPF) is a retirement savings scheme in India that offers individuals long-term savings for their post-retirement life and other benefits. The fund is managed by the Employees' Provident Fund Organization (EPFO) under the Ministry of Labour and Employment, Government of India. EPF involves regular contributions from both employer and employee along with additional contributions from the government to ensure that employees have adequate savings when they retire. EPF also provides certain tax benefits and withdrawal options, making it an ideal retirement savings option for most people.
EPF meaning in Non-Profit Organizations in Community
EPF mostly used in an acronym Non-Profit Organizations in Category Community that means Employees' Provident Fund
Shorthand: EPF,
Full Form: Employees' Provident Fund
For more information of "Employees' Provident Fund", see the section below.
What It Is
EPF is a retirement savings account designed to give employees a secure financial future after they retire from work. It was established in 1952 and since then has continued to be popular among salaried individuals in India as it provides generous returns on contributions as well as tax benefits. EPF requires both employers and employees to contribute 12% of salary each month towards the fund, while the government adds a further 1.16% contribution to the EPF corpus every year through its Employer’s Pension Scheme (EPS). The current interest rate on contributions in 2020 is 8.50%. Apart from providing returns on contribution, EPF also helps a salaried individual save for their retirement through withdrawal options like partial withdrawals or by using an employee pension scheme (EPS). Partial withdrawals are allowed for specific purposes like buying a house or marriage expenses while EPS works just like normal monthly pension plans once you retire from employment.
Benefits Of EPF
The primary benefit associated with making monthly contributions toward EPF is that it provides individuals with steady returns at attractive rates which are usually higher than fixed deposits and other investments offered by banks and mutual funds.. Additionally, since EPF provides tax deductions up to Rs1.5 lakhs per annum under Section 80C of the Income Tax Act 1961 in India, one can avail of considerable tax exemption when investing through this scheme. Moreover, one gets insured against any untoward event during their working life with the help of an Employee Deposit Linked Insurance Policy (EDLI). Through this policy, if an individual dies during their service period or within 5 years after leaving the job then their family would receive financial aid equivalent to half yearly wages multiplied by 26 times plus bonus payments up to max Rs 2 lakhs/annum as prescribed by law. Therefore dual benefits such as returns at attractive rates coupled with insurance coverage make investing through EPF worth considering even after retirement age.
Essential Questions and Answers on Employees' Provident Fund in "COMMUNITY»NONPROFIT"
What is Employees' Provident Fund?
Employees' Provident Fund (EPF) is a retirement savings plan administered by the Employees' Provident Fund Organisation of India (EPFO). It helps employees save a portion of their salary and accumulate wealth over time for better financial security after retirement.
Who contributes to an EPF account?
Both the employer and employee contribute to the EPF account. The employer contributes 12% of the employee's basic salary and dearness allowance, while the employee contributes 12% of their basic salary.
Can I withdraw from my EPF account before retirement?
Yes, you can withdraw from your EPF account before retirement but only in certain special circumstances like buying a house or funding your child's education.
Are contributions to an EPF account tax deductible?
Yes, contributions to an EPF account are tax deductible up to Rs 1.5 lakhs as per Section 80C of the Income Tax Act 1961. This means that any amount you contribute to your EPF account will not be included in your taxable income.
How do I check my EPF balance?
You can check your EPF balance online through UMANG app, using your Aadhaar Number or UAN number or through SMS using your registered mobile number linked with UAN. Alternatively, you can also directly contact the local PF office or visit www.epfoservices.in for more information on how you can check your balance.
Can I transfer my existing EPF Account?
Yes, you can transfer your existing provident fund (PF) account into another one if you have changed employers or locations because of job change. All you need to do is fill out form 13 and submit it with relevant documents at both previous/existing and new employers’ provident fund offices for processing and approval of transfer request within 7-10 days (usually).
How long does it take to process an EPF withdrawal request?
Generally, an Employees' Provident Fund Organisation (EPFO) takes around 15-20 days to process an EPF withdrawal request once all required documents are submitted.
Is there a penalty for premature withdrawals from my EPF account?
If funds are withdrawn prematurely from a provident fund (PF) account before completing five years of continuous service with same employer then there will be penalty charges deducted from withdrawable amount at rate specified by India government rule which is currently 10%. However, no such charges are applicable if funds are transferred due to job change or promotion etcetera.
Is withdrawal from an EPS Account taxable?
Generally speaking withdrawals from Employee's Pension Scheme Accounts (EPS) are fully exempt according to Indian Tax Laws provided all criteria for exemption has been satisfied else such withdrawals may be taxable as per relevant provisions.
Final Words:
Since its introduction in 1952, EPF has become one of India's most preferred long-term investment options due to its attractive rates of return and additional tax advantages offered under Section 80C of Income Tax Act 1961. This makes it an ideal choice for salaried individuals looking for post-retirement savings as well as securing their families financially during their employment years with EDLI coverage provided along with it. Withdrawal options such as partial withdrawals or EPS enable employees get easy access to these funds at any point during their working career thus making it easier for them achieve financial security even beyond retirement age.
EPF also stands for: |
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| All stands for EPF |