Often people are confused with PF and PPF, but there is a fundamental difference between the two. Instead of PPF PF, there is a separate account that you can open and get income tax deduction along with savings. Both of these have their own rules. We are going to tell you in detail about this in our news.
- Difference between PF and PPF: PF is basically an account that is open to employers. This is also called an EPF. While the PPF is a central government scheme which is operated by banks and post offices. Anyone can open this account even if they are not employable.Also Check :IPhone X: Handset Listed On Flipkart, Amazon India
- What is PF: In this account opened to the employed people, the Employer deposits it with a fixed amount (currently 12% in current time) from your basic salary to PF account. This amount is decided by the government and the same amount is deposited in the account as part of the worker's contribution. Out of the amount deposited by the employer, 8.33 percent goes to the Employees Pension Scheme (EPS). 8.65% interest is available on this. For this, the UAN number is issued to every account holder.
- Tax Benefit: If you withdraw before 5 years, then the tax will be charged on the amount. Otherwise the discount under 80C is achieved.
- What is PPF: This government scheme is operated by banks and post offices. In order to open an account in it, it is not necessary to have a job profession. It gives interest at 7.8 percent rate. The maturity period is 15 years but you can withdraw some part of the deposit after 5 years.
- Tax Benefit: There is no tax on the amount deposited in the account under 80C and the maturity amount.
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