What is the difference between EPF and PPF and it's type
So let's understand what is PF, the full name of PF is Provisional Fund. The Provident Fund, as you all know that all people work to earn their living, from which they get some money but sometimes it happens. That when their job is gone and for some reason they stop getting money, then you do not have any social security any sources of income you have to face a lot of problems when you are driven away by your children in old age, you are unemployed during this time.
What will happen to them, how will they live, keeping all these in mind, all the companies and the government come to the PF account of all the people i.e. a provisional fund account, in this account the automatically fixed amount is deducted from your salary and deposited safely in your account.PF is for a very long time, like is 10 years, 20 years and up to 40 years, out of which you cannot withdraw money before the fixed time, however if you have any problem here If trouble has come, then you can withdraw your particel amount by showing that problem and trouble.
But it also has a fixed time, the money you deposit in your account must be 5 years old. PF account is absolutely safe, the government and rbi takes responsibility for it and your money is absolutely safe, now let's understand how many types of PF are there as you all know. There are two types of you, one is EPF and the other is PPF.
EPF means employee provisional fund, this account is for those people who work somewhere, their account is opened here. And PPF means that Public Provisional Fund, this account is opened for those people who are earning money for small business or any other work, this account has been created for them.
Let us now understand what is the difference between EPF and PPF.
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1:- EPF was established in 1952 and PPF was established in 1968.
2:- Depositing money in EPF is compulsory as there is no company for genral public so deposit you money in PPF it's not compulsory.
3:- If there are more than 20 employees working in any company, even if that company is not a government story private, it is the responsibility of the company to open the PF account of its employees. In this, after deducting 12% from the salary of the employees, the country amount is given to the employee. Whereas on the other hand, you can deposit as much money as you want to deposit in PPF.
4: - PPF account can be opened by anyone, one should be a citizen of India while EPF account is opened only for employees.
5:- The general public who is not an employee, whose PPF account can be opened in the post office and banks.your money is fully safe by the bank and RBI.whereas the EPF account cannot be opened anywhere for the employees. There is a special bank whose job is to open and protect PF account, its name is EPFO, its full name is Employee Provisional Fund Organization, the responsibility of its maintenance is the responsibility.the Ministry of Labor, EPFO works inside the Ministry of Labor.
6:- In EPF, 12% of your monthly fixed amount is deducted from your salary and deposited in PPF, which is meant for the general public, if they happen repeatedly, then they can be deposited from 500 to 1.5 lakh per annum.
7:- Employees get 8 to 9% interest in EPF while 7 to 8% interest is available in PPF.
8: - You get the maturity of EPF when you retire from your job, whereas there is no retirement from PPF here, so their money is given after 15 years.
9: - You can either withdraw the entire amount of EPF money, or you can withdraw money by making monthly installments, not only for this PPF also follow this.
10: - In EPF if you need money for some important work like for your medicine, for your son's daughter's education and for other important work, you can get some of your money but for this you need at least You will have to deposit your EPF and PPF for at least 5 years, keep in mind that you cannot withdraw your entire deposit ammount.
11:- EPF and PPF This debit is free, out of which the loan taken by you cannot be reimbursed, no bank and any institution can debit money from your PF account, so PF account is called the safest account. Goes.
12: - EPF and PPF account holder is text free, after your maturity, if you have received 1lakh then you do not have to pay even ₹ 1 tax to the government, you become tax free.
13: Your EPF and PPF account opens only one and one turn in your entire India, no other account is opened in the whole of India or you are in government job or in private job, you will open only one PPF account.
14: - In EPF and PPF, you can deduct only 12% and 500 to ₹ 100000 from your salary, you cannot deduct more than this.
If you want to deduct more than 12% from my EPF, then it is only if you are working in a government company, then your GPF account ie General Provident Fund will have to be opened, working in a private company like Tata and Mahindra.If you are working in private companies etc. and you want my PF to be deducted more than 12%, then for that you have to open vpf account i.e. Voluntary Provident Fund account.
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