What is the difference between EPF & PPF?
EPF PPF Return on Investment 8.5 % Pa 8% Pa Contribution 12% on Basic & DA up to a maximum of Rs.780/- Pm Min: Rs.500/- Pa Max: Rs. 70,000/- Pa No. of Years At the time retirement or resignation. It can be transferred from one company to the other if one changes jobs. In case of the death of the employee, the accumulated balance is paid to the legal heir. 15 years. It can be extended for a period of five years further. During these five years, you earn the rate of interest and can also make fresh deposits. Tax Impact The amount you invest is eligible for deduction under the Rs 1,00,000 limit of Section 80C. If you have worked continuously for a period of five years, the withdrawal of PF is not taxed. If you have not worked for at least five years, but the PF has been transferred to the new employer, then too it is not taxed. The tenure of employment with the new employer is included in computing the total of five years. If you withdraw it before completion of five years, it is taxed. B
