New Delhi: Some of the popular investment schemes are the Employee Provident Fund (EPF) or PF, the National Pension Scheme (NPS), the Public Provident Fund (PPF) and the Voluntary Provident Fund (VPF). Investors, especially those considering retirement plans, look for stable returns and tax advantages while choosing these investment options.Also Read – International Flights: Tourism Secretary Makes Big Announcement, Says Scheduled Flight Services From India May Start Soon
PF or Employee Provident Fund (EPF)
The Employee Provident Fund (EPFO) offers EPF or PF for the salaried class. Both employee and employer contribute 12 percent of base salary plus cost allowance (DA) per month into this fund. EPFO provides interest on individual accounts. Interest on the capital and the fund is tax free. The current interest rate of the PF or EPF is 8.5 percent. Also Read – SRH vs CSK Dream11 Team Prediction, Fantastic Clues VIVO IPL 2021 Match 44: Captain, Vice Captain – Sunrisers Hyderabad vs Chennai Super Kings, playing 11s for today’s T20 game at Sharjah Cricket Stadium 7:30 p.m. IST Thursday September 30
Public provident fund (PPF)
Any citizen of the country is eligible to open an account with the Caisse Publique de Prévoyance. A PPF account can be opened in any postal and banking agency. The central government decides the interest rate. The PPF regime has a blocking period of 15 years. However, withdrawals can be made in certain cases. The current PPF interest rate is 7.10 percent. Also read – Delhi restaurant that ‘denied entry to woman in Saree’ closed due to license
National pension scheme (NPS)
Anyone between the ages of 18 and 60 can invest in the National Pension Scheme. The Indian Pension Fund Regulatory Authority (PFRDA) manages the NPS. The contribution to the NPS is exempt from tax in accordance with section 80 of the Income Tax Act. Full withdrawal can be made after depositors reach 60 years of age.
Voluntary Provident Fund (VPF)
Employees are allowed to contribute monthly to the Voluntary Provident Fund (. They can choose the amount of the monthly contribution but the amount must not be less than 12%. A VPF account is linked to the EPF account. The VPF has a period of 5 year lock in. A tax deduction will apply if someone withdraws before 5 years The current VPF interest rate is 8.5 percent.